Introduction & Motivation

1.1 Why We Built This

Tokenized private credit is becoming one of the most promising real-world applications of blockchain. Businesses across industries—real estate developers, importers, manufacturers, agricultural cooperatives, luxury asset dealers, e-commerce operators—are exploring how to raise capital by tokenizing their commercial cycles and offering fixed-yield credit directly to their communities.

But while demand is exploding, the tooling isn’t there.

The Gap: No Infrastructure for “Everyday” Tokenization

Most of today’s tokenization happens at the institutional layer:

  • Credit funds tokenizing senior or mezzanine tranches

  • Structured credit pools run by fintech platforms

  • Custodial, permissioned, heavily intermediated pipelines

What’s missing is the infrastructure for actual businesses—the ones running inventory cycles, construction cycles, import/export cycles—to tokenize their future revenue and raise capital directly from the market.

What These Businesses Told Us

Across dozens of conversations with:

  • SME operators

  • Trade finance teams

  • RWA founders

  • Supply-chain platforms

  • Real-world project creators

…we heard the same things:

“We know our business. We know how to structure the deal. We just don’t have the developers.”

“We need transparency and trust for investors, but we can’t build smart contracts.”

“Tokenization is perfect for us — but too technical to start.”

They don’t want to become blockchain companies. They want to access capital.

And that’s where Trustless Work already plays a critical role.


Escrows: The Missing Trust Layer in Tokenized Credit

Tokenized credit only works if investors can trust that:

  1. Funds are held securely

  2. Money is released only when real-world conditions are met

  3. There is transparency into how capital moves

This is exactly what Trustless Work already provides.

We solved one of the hardest pieces of tokenization:

Milestone-based escrowsRole-based approvalsTransparent release conditionsAuditable on-chain historyInvestor-visible escrow viewer

If Stellar solved “how money moves,” Trustless Work solves how money waits while real-world work happens.

This is why every tokenization use case that came to us—real estate, trade finance, equipment financing, agriculture, automotive imports, hotel renovations—asked if they could integrate our escrows as their trust layer.

They need capital controls, trust, and credibility.


Why We’re Building This Hackathon Project

To unlock real tokenized private credit, you need three pillars:

  1. A trust layer → the escrow

  2. A participation layer → the token

  3. A redemption layer → the vault

Before this hackathon, Trustless Work already delivered the first pillar at production level.

This hackathon project adds the other two—so builders can create full tokenized private credit flows without hiring a blockchain engineering team.


1.2 What This Project Adds to Trustless Work

This hackathon expands Trustless Work from an escrow infrastructure into a full tokenization primitive.

New Smart Contract Modules

Module
Purpose

Token Factory

Creates participation tokens tied to an escrow ID

Token Sale Contract

Swaps USDC → participation token & deposits funds into the escrow

Vault Contract

Handles final ROI deposits and investor redemptions (token burn + payout)

These contracts are intentionally modular, permissionless, and business-agnostic.

New dApps Built for the Hackathon

dApp
Actor
Purpose

Backoffice

Project Creator

Deploy escrow, create token, launch sale

Project Dashboard

Manager / Operator

Update milestones, upload evidence, drive project execution

Investor Portal

Investors

Buy tokens, monitor escrow, claim ROI

Why This Matters

These components turn Trustless Work into:

  • A tokenized credit engine

  • A developer-ready toolkit

  • A trust layer for real-world capital

  • A secure, auditable foundation for any tokenization platform

Future Expansion Potential

This module easily extends into:

  • Private credit marketplaces

  • SME tokenization templates

  • Vertical-specific UIs (real estate, trade, agriculture)

  • Fully modular tokenized credit infrastructure



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