The potential of the RWA track has not been fully unleashed, and Aptos has emerged as a dark horse.

Tokenization of Real-World Assets ( RWA ) has always been regarded as an important bridge connecting traditional finance and the crypto market, but its scale remains relatively limited at present. According to statistics from data platforms, the current 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. This indicates that the development of the RWA sector is just beginning, and as more types of assets are tokenized in the future, its potential is expected to be further unleashed.

It is noteworthy that the Aptos public chain has recently performed well in the RWA field. In the past 30 days, the total locked value (TVL) of RWA on the Aptos chain has increased by 56.4%, reaching 538 million USD, and its ranking has risen to third place among public chains. As more DeFi protocols join the Aptos ecosystem, the competitiveness of this public chain in the RWA track is expected to further strengthen.

Private credit dominates the current RWA market

In RWA assets, private credit occupies 58% of the share, becoming the most significant asset class, followed by U.S. Treasuries. Private credit assets mainly exist in on-chain form and largely lack trading liquidity. U.S. Treasuries, on the other hand, face competition from interest-bearing stablecoins, as these stablecoins also 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 the traditional finance sector, private credit has attracted a large number of institutional investors due to its flexibility and high returns. However, it also faces issues such as high costs, low efficiency, and high barriers to entry. For example, the auditing process for traditional private credit is cumbersome, transaction costs are high, and small to medium-sized enterprises often struggle to obtain financing.

The encryption protocol eliminates multi-layer intermediaries by issuing and managing assets on-chain, reducing costs, and improving the transparency of loan pools and underlying asset performance. This brings new development opportunities to private credit.

Private Credit Asset Tokenization Process

( 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, formulate repayment plans and default terms, and review the borrower's financial status. For example, a $1 million loan is granted 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. This step ensures that the assets meet traditional financial standards, laying the foundation for subsequent tokenization.

) 2. Build the on-chain token structure

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

3. Compliance Packaging

The tokenization process must comply with regulatory requirements. Typically, a special purpose entity ### SPV ### or a virtual asset service provider ( VASP ) is established in a specific jurisdiction as the legal custodian. All investors must complete KYC/KYB and AML reviews, and non-qualified investors are restricted in their access and transfer rights according to relevant regulations. Off-chain disclosure documents clearly define the debt asset attributes of the tokens, which do not carry voting rights or equity.

( 4. Token Issuance and Financing

Display tokens through the protocol platform and accept on-chain investments. After investors complete KYC verification, they use digital currency for investment and receive RWA tokens as proof, and receive repayment principal and interest according to the agreed cycle.

) 5. Profit Distribution and Asset Settlement

The borrower repays according to the plan, and the funds are collected by the issuer and then transferred to the SPV, mapped on-chain through an oracle or smart contract, and distributed to token holders. The smart contract automatically splits the interest based on the holding ratio, and upon loan maturity, it automatically returns the principal or arranges for asset rollover. Some token structures may support trading on decentralized exchanges or dedicated markets, but usually have a lock-up period.

Aptos's Competitive Advantages in the RWA Track

Technical Advantages

Aptos, as a new generation Layer 1 blockchain, brings unique advantages to the RWA track with its technical architecture:

1. High throughput and low latency: Aptos utilizes the Block-STM parallel execution engine to achieve efficient transaction processing. Official test data shows that Aptos's theoretical throughput can reach 150,000 transactions per second, with stable performance in real production environments at 4,000 to 5,000 TPS. The final confirmation time for transactions is only 650 milliseconds, which is crucial for RWA assets that require instant settlement.

2. Low transaction costs: Aptos's transaction fees average less than $0.01, which is very important for RWA scenarios involving frequent on-chain operations.

3. Modular Architecture and Scalability: Aptos's modular design separates the consensus, execution, and storage layers, allowing each layer to be independently optimized, which is very beneficial for managing complex RWA asset metadata.

ecological layout

Aptos's ecological layout in the RWA track has significantly enhanced its competitiveness through partnerships with traditional financial giants and the expansion of the DeFi ecosystem.

1. Institutional Cooperation: Aptos has partnered with several traditional financial institutions to introduce various RWA assets, such as Ondo Finance's USDY and Franklin Templeton's BENJI token.

2. Regulatory friendliness: Aptos has built-in on-chain identity verification and asset tracking features by collaborating with compliant platforms, meeting multiple regulatory requirements.

3. Emerging Market Positioning: Aptos's RWA strategy focuses on emerging markets, particularly in areas with insufficient financial inclusion. For example, various private credit products issued on-chain through the Pact protocol cover multiple segments such as consumer loans in emerging markets, financing for micro and small enterprises, and distressed asset management.

Summary

Aptos's rapid rise in the RWA sector is attributed to its technological advantages and ecological layout. Private credit, as the growth engine of RWA, has achieved on-chain composability through tokenization, allowing credit tokens to participate in various financial activities of DeFi protocols. Aptos's low transaction fees and fast confirmation times support real-time lending and settlement, providing an ideal infrastructure for RWA asset management.

As the interest rate spread in traditional financial markets tightens, 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 maintain its growth momentum in the RWA sector and demonstrate great development potential.