The RWA market is poised for takeoff, Aptos emerges as a dark horse

Real-world asset tokenization (RWA), as a field that has attracted significant market attention, has yet to fully demonstrate its potential to connect with the trillion-dollar assets of traditional markets. Data shows that the total market value of RWA assets in the crypto industry is only $24 billion. Although it has grown by 56% in the first half of this year, it is still in the early stages of development. In the future, as more asset classes achieve tokenization, RWA is expected to enter a new phase.

During this critical period, Aptos has shown strong momentum. In the past 30 days, the total value locked (TVL) of RWA on the Aptos chain has increased by 56.4%, reaching $538 million, making it the third largest public chain. With the expansion of the ecosystem, Aptos may occupy a favorable position in the next phase of competition for RWA.

Private Credit Dominates the Current RWA Market

Private credit accounts for 58% of RWA assets, becoming the most prominent asset class, followed by U.S. Treasuries. Private credit primarily exists in on-chain form and often lacks trading liquidity; meanwhile, U.S. Treasuries face competitive pressure from interest-bearing stablecoins.

Private credit refers to loans provided by non-bank institutions to businesses or individuals in the private market. Traditional private credit, while offering attractive returns, faces issues such as high costs, low efficiency, and access restrictions. Crypto protocols innovate the traditional private credit market by issuing and managing assets on-chain, reducing intermediary costs and increasing transparency.

Private Credit Asset Tokenization Process

1. Off-chain credit asset generation

The asset issuer is responsible for generating off-chain credit assets. This includes signing loan agreements, setting up collateral assets, formulating repayment plans and default terms, and reviewing the borrower's financial status. For example, issuing a loan of $1 million to a logistics company for a term of 12 months at an annual interest rate of 12%, secured by $1.1 million in accounts receivable.

2. Build the on-chain token structure

Mapping loans to on-chain tokens through the RWA protocol. The token forms include NFT, SFT, or ERC-20 type. The token metadata covers borrower anonymous identification, principal amount, interest rate, repayment frequency, maturity date, details of collateral assets, and default handling mechanisms. Smart contracts support repayment status management, automatic yield distribution, and transfer functions.

3. Compliant Packaging

Establish special purpose entities or virtual asset service providers as legal custodians in appropriate jurisdictions. Investors need to complete KYC/KYB and AML reviews. Off-chain disclosure documents clarify the nature of the tokens, combined with on-chain hash verification and off-chain encrypted storage of personal identity information to ensure compliance.

4. Token Issuance and Financing

Show tokens through the platform and accept on-chain investments. After investors complete KYC verification, they can invest using digital currencies and receive RWA tokens as proof, as well as regularly receive repayment principal and interest.

5. Profit Distribution and Asset Settlement

The borrower repays according to the plan, and the funds are transferred on-chain by the issuer and SPV, distributed to token holders through smart contracts. Upon loan maturity, the principal is automatically returned or asset rollover is arranged. Some token structures support secondary market trading, but usually have a lock-up period.

Aptos's Competitive Advantages in the RWA Track

Technical Advantages

Aptos, as a new generation public chain, provides a solid foundation for RWA applications with its technical architecture:

• High throughput and low latency: theoretical throughput of 150,000 TPS, actual 4,000-5,000 TPS, transaction confirmation time of 650 milliseconds, supporting large-scale loan issuance and real-time settlement.
• Low transaction costs: average transaction fees are less than $0.01, reducing the cost of RWA asset management.
• Modular architecture: separation of consensus, execution, and storage layers to accommodate complex RWA asset management needs.

ecological layout

Aptos enhances the competitiveness of the RWA track through collaboration with traditional financial institutions and the expansion of the DeFi ecosystem:

• Institutional Collaboration: Introduce products such as USDY from Ondo Finance and BENJI from Franklin Templeton to enhance ecological diversity.
• Regulatory Friendly: Collaborate with compliant platforms, with built-in on-chain identity verification and asset tracking features, adapting to global regulatory trends.
• Emerging market positioning: Focus on regions with insufficient financial inclusion, such as BSFG issuing diversified financing products for emerging markets on Aptos.

Future Outlook

With the optimization of the regulatory environment and the expansion of the DeFi ecosystem, Aptos is expected to continue growing in the RWA sector. Its low transaction fees and fast confirmation times support real-time lending and settlement, and future integration with more DeFi protocols may further unleash its potential. Through technological innovation and ecological layout, Aptos is demonstrating strong growth in niche areas of RWA, such as private credit.