The RWA market has immense potential, and Aptos is rising rapidly.

Real World Asset Tokenization (RWA) is a highly anticipated track that has yet to fully demonstrate its potential to connect traditional market trillion-dollar assets. Data shows that the total market value of RWA assets in the crypto industry is only $24 billion, which is still in its infancy even after a 56% growth in the first half of this year. As more asset types are tokenized in the future, RWA is expected to enter a new stage of development.

Aptos has performed impressively during this critical period. In the past 30 days, its total value locked (TVL) in on-chain RWA has increased by 56.4%, reaching $538 million, ranking third among public chains. With the addition of new projects, Aptos may hold a favorable position in the next phase of competition in RWA.

Private Credit Dominates the Current RWA Market

Private credit accounts for 58% of RWA assets, becoming the most关注的 asset class, followed by US Treasury bonds. Private credit assets mainly exist in on-chain form, but mostly lack trading liquidity. US Treasury bonds face competitive pressure from interest-bearing stablecoins, which offer similar yield characteristics.

Private credit refers to loans provided by non-bank institutions or investors to businesses or individuals in the private market. In traditional finance, private credit attracts a large number of institutional investors due to its flexibility and high returns, but it also faces issues such as high costs, low efficiency, and entry barriers.

Cryptographic protocols eliminate intermediary steps to reduce costs and improve the transparency of loan pools and underlying asset performance by issuing and managing assets on-chain.

Tokenization Process of Private Credit Assets

1. Off-chain credit asset generation

The asset issuer is responsible for generating off-chain credit assets. Private credit institutions, small and medium-sized enterprise financing platforms, or regional credit market operators establish loan agreements, set collateral assets, develop repayment plans and default terms, and evaluate the borrower's financial condition. This step ensures that the assets meet traditional financial standards, laying the groundwork for subsequent tokenization.

2. Build the on-chain token structure

Through the RWA protocol, single or multiple loans are mapped to on-chain tokens. The token forms include NFT, SFT, or ERC-20 type. The token metadata covers borrower anonymous identification, principal amount, interest rate, repayment frequency, due date, collateral asset details, and default handling mechanisms. Smart contracts support repayment status management, automatic yield distribution, and early redemption or peer-to-peer transfer.

3. Compliance Packaging

The tokenization process must comply with regulatory requirements. Establish special purpose entities or virtual asset service providers as legal custodians. All investors must undergo KYC/KYB and AML reviews, and non-qualified investors are restricted in access and transfer rights according to relevant regulations. Off-chain disclosure documents clearly indicate that the tokens are debt assets and do not carry voting rights or equity attributes.

4. Token Issuance and Financing

Display tokens through the user interface or protocol platform and accept on-chain investments. After investors complete KYC verification, they can invest using digital currencies and receive RWA tokens as proof, while regularly collecting repayment principal and interest.

5. Profit Distribution and Asset Liquidation

The borrower repays according to the plan, and the funds are collected by the issuer and transferred to a special purpose entity, mapped on-chain through oracles or smart contracts, and allocated to token holders. The smart contract automatically splits interest based on holding ratio, and after the loan matures, it automatically returns the principal or arranges for asset continuation.

Aptos's Competitive Advantages in the RWA Track

Technical Advantages

Aptos, as a new generation of public blockchain, provides unique advantages for the RWA track with its technical architecture:

1. High throughput and low latency: Theoretical throughput can reach 150,000 TPS, with actual production environment stability at 4,000-5,000 TPS. The final confirmation time for transactions is only 650 milliseconds, supporting instant settlement.

2. Low transaction costs: average transaction fees are less than $0.01, which is beneficial for frequent on-chain operations.

3. Modular architecture and scalability: Separation of consensus, execution, and storage layers allows for independent optimization of each layer, suitable for complex RWA asset management needs.

ecological layout

Aptos has enhanced its competitiveness in the RWA space by collaborating with traditional financial giants and expanding the DeFi ecosystem:

1. Institutional Collaboration: Introduce RWA products from multiple well-known financial institutions, such as Ondo Finance's USDY and Franklin Templeton's BENJI token.

2. Regulatory Friendly: Built-in on-chain identity verification and asset tracking features that comply with various regulatory requirements. Selected by the state of Wyoming as the top technology-rated candidate chain for the stablecoin project WYST.

3. Emerging Market Positioning: Providing diversified financing solutions for emerging markets and specific regions through the Pact protocol, such as the BSFG series of products covering various fields including consumer loans, mortgages, and financing for small and micro enterprises.

Summary

Aptos's rapid rise in the RWA sector is attributed to its technological advantages and ecosystem layout. By June 2025, its RWA TVL reached $538 million, ranking third among public chains. Private credit serves as the growth engine for RWA, achieving on-chain composability through tokenization, yielding considerable returns. Aptos's low fees and fast confirmations support real-time lending and settlement, and future integration with DeFi projects may further activate its potential.

As the interest rate spreads in traditional financial markets tighten, institutional investors are turning to on-chain solutions. Aptos fills the financing gap for small and medium-sized enterprises by serving emerging markets. In the future, with the optimization of the regulatory environment and the expansion of the DeFi ecosystem, Aptos is expected to add $500 million in RWA TVL by 2026, demonstrating sustained growth potential in the private credit sector.