RWA Sector Status and Potential

The RWA (Real World Assets) sector, while highly anticipated, has yet to demonstrate its potential to connect trillions of dollars in traditional market assets. According to rwa.xyz, the total market capitalization of RWA assets in the crypto industry is only $24 billion, and this is after a sharp 56% increase in the first half of this year. This indicates that the RWA narrative is not over, but rather has not yet truly begun. As US stocks move on-chain and more asset categories become tokenized in the future, RWA will truly enter its next phase. On the eve of this dawn, Aptos has already achieved a leapfrog victory. Its on-chain RWA TVL grew 56.4% in the past 30 days, reaching $538 million, rising to third place among public chains. With the arrival of Aave, RW assets on Aptos are likely to welcome more investment opportunities, positioning Aptos favorably for the next stage of RWA competition.

Private Credit Remains the Dominant Path

Private Credit accounts for 58% of the RWA asset share, making it the most prominent asset category, followed by US Treasury bonds. Private credit assets primarily exist on-chain and mostly lack trading liquidity; whereas US Treasury bonds face competitive pressure from yield-bearing stablecoins, which are collateralized by Treasuries and offer similar yield characteristics.

What is Private Credit? It refers to loans provided to companies or individuals by non-bank institutions or investors in non-public markets. In traditional finance, private credit attracts numerous institutional investors due to its flexibility and high yields. However, it also faces pain points like high costs, low efficiency, and access restrictions. For instance, traditional private credit involves cumbersome audit processes, high transaction costs, and SMEs often struggle to secure financing due to a lack of credit history.

Crypto protocols act as intermediaries, with their core business model being the issuance and management of assets on-chain. They reduce costs by eliminating multiple layers of intermediaries and increase transparency by providing real-time performance data for loan pools and underlying assets.

Private Credit Asset Tokenization Process

1. Off-Chain Credit Asset Generation: The asset originator is responsible for generating the off-chain credit asset. Private credit institutions, SME financing platforms, or regional credit market operators establish the asset by signing loan agreements, setting collateral, creating repayment schedules and default clauses, and reviewing the borrower's financial status. This step ensures the asset meets traditional financial standards, laying the groundwork for subsequent tokenization.

2. Constructing On-Chain Token Structure: Using an RWA protocol, single or multiple loans are mapped to on-chain tokens. Token forms include NFTs, SFTs, or ERC-20 types. Token metadata covers anonymized borrower identifiers, principal amount, interest rate, repayment frequency, maturity date, collateral details, and default mechanisms. Smart contracts manage repayment status, automate yield distribution, and enable early redemption or P2P transfer.

3. Compliance Wrapping: The tokenization process must meet regulatory requirements. This involves establishing an SPV or VASP in jurisdictions like the Cayman Islands, BVI, or Singapore as the legal custodian. All investors undergo KYC/KYB and AML checks. Off-chain disclosure documents clarify the token's nature as a debt asset. This step combines on-chain hash verification with off-chain encrypted storage of PII to ensure compliance.

4. Token Issuance and Financing: Tokens are displayed via a UI or protocol platform for on-chain investment. Investors complete KYC, invest using stablecoins or APT, receive RWA tokens as proof, and receive periodic repayments of principal and interest.

5. Yield Distribution and Asset Liquidation: Borrowers make scheduled repayments. Funds are collected by the originator, transferred to the SPV, and mapped on-chain via an oracle or smart contract for distribution to token holders. Smart contracts automatically split interest based on holding比例. Upon maturity, principal is returned automatically or asset rollover is arranged. If the token structure allows, trading on DEXs or RWA-specific markets may be possible, often with lock-up periods.

Aptos' Competitive Advantages in the RWA Sector

Technical Advantages: The Potential of High-Performance Blockchain for Finance

Aptos's technological architecture gives it unique advantages in the RWA sector, particularly for private credit tokenization.

* High Throughput & Low Latency: Utilizing the Block-STM parallel execution engine, Aptos achieves high throughput and sub-second finality. This supports large-scale loan issuance, real-time repayment distribution, and on-chain audits crucial for RWA.

* Low Transaction Costs: Average transaction fees below $0.01 are critical for RWA scenarios involving frequent on-chain operations, keeping operational costs manageable.

* Modular Architecture & Scalability: The separation of consensus, execution, and storage layers allows for independent optimization, which is vital for managing the complex metadata associated with private credit.

Ecological Layout: Institutional Backing & Regulatory Friendliness

Aptos's ecosystem strategy, involving partnerships with traditional finance giants and DeFi expansion, significantly boosts its competitiveness.

* Institutional Cooperation & Backing: Collaborations with entities like Ondo Finance, Franklin Templeton, and Libre have brought credibility, funding, and technical expertise to the Aptos RWA ecosystem, helping its TVL reach $5.4 billion.

* Regulatory Friendliness: By partnering with compliance platforms, Aptos incorporates features like on-chain identity verification and asset tracking, helping projects meet KYC/AML and other regulatory requirements effectively.

* Emerging Market Focus: Aptos's RWA strategy targets emerging markets with poor financial inclusion. Assets originated by partners like BSFG on Aptos (via Pact) provide diversified financing solutions for these markets, significantly driving the growth of Aptos's RWA TVL.

Conclusion

Aptos's rapid rise in the RWA sector is attributed to its technical strengths and strategic ecosystem development. Its RWA TVL reached $5.38 billion in June 2025, ranking third among public chains, primarily driven by private credit. The Pact protocol has been a major contributor. Private credit, as a growth engine for RWA, gains composability through tokenization, allowing credit tokens to participate in various DeFi strategies. Compared to Treasury bonds, private credit's higher yields and clear cash flows make it more attractive. Aptos's low fees and fast finality support real-time lending and settlement. Future integrations, like with Aave, could further unlock potential.

Currently, tightening spreads in traditional finance are pushing institutions towards on-chain solutions. Aptos addresses the SME financing gap in emerging markets. Looking ahead, with optimizing regulations and an expanding DeFi ecosystem, Aptos is poised for further growth, potentially adding $5 billion in RWA TVL by 2026. Through the synergy of its technology and ecosystem, Aptos is demonstrating sustained potential in the private credit arena.

RWA Sector Status and Potential

The RWA (Real World Assets) sector, while highly anticipated, has yet to demonstrate its potential to connect trillions of dollars in traditional market assets. According to rwa.xyz, the total market capitalization of RWA assets in the crypto industry is only $24 billion, and this is after a sharp 56% increase in the first half of this year. This indicates that the RWA narrative is not over, but rather has not yet truly begun. As US stocks move on-chain and more asset categories become tokenized in the future, RWA will truly enter its next phase. On the eve of this dawn, Aptos has already achieved a leapfrog victory. Its on-chain RWA TVL grew 56.4% in the past 30 days, reaching $538 million, rising to third place among public chains. With the arrival of Aave, RW assets on Aptos are likely to welcome more investment opportunities, positioning Aptos favorably for the next stage of RWA competition.

Private Credit Remains the Dominant Path

Private Credit accounts for 58% of the RWA asset share, making it the most prominent asset category, followed by US Treasury bonds. Private credit assets primarily exist on-chain and mostly lack trading liquidity; whereas US Treasury bonds face competitive pressure from yield-bearing stablecoins, which are collateralized by Treasuries and offer similar yield characteristics.

What is Private Credit? It refers to loans provided to companies or individuals by non-bank institutions or investors in non-public markets. In traditional finance, private credit attracts numerous institutional investors due to its flexibility and high yields. However, it also faces pain points like high costs, low efficiency, and access restrictions. For instance, traditional private credit involves cumbersome audit processes, high transaction costs, and SMEs often struggle to secure financing due to a lack of credit history.

Crypto protocols act as intermediaries, with their core business model being the issuance and management of assets on-chain. They reduce costs by eliminating multiple layers of intermediaries and increase transparency by providing real-time performance data for loan pools and underlying assets.

Private Credit Asset Tokenization Process

1. Off-Chain Credit Asset Generation: The asset originator is responsible for generating the off-chain credit asset. Private credit institutions, SME financing platforms, or regional credit market operators establish the asset by signing loan agreements, setting collateral, creating repayment schedules and default clauses, and reviewing the borrower's financial status. This step ensures the asset meets traditional financial standards, laying the groundwork for subsequent tokenization.

2. Constructing On-Chain Token Structure: Using an RWA protocol, single or multiple loans are mapped to on-chain tokens. Token forms include NFTs, SFTs, or ERC-20 types. Token metadata covers anonymized borrower identifiers, principal amount, interest rate, repayment frequency, maturity date, collateral details, and default mechanisms. Smart contracts manage repayment status, automate yield distribution, and enable early redemption or P2P transfer.

3. Compliance Wrapping: The tokenization process must meet regulatory requirements. This involves establishing an SPV or VASP in jurisdictions like the Cayman Islands, BVI, or Singapore as the legal custodian. All investors undergo KYC/KYB and AML checks. Off-chain disclosure documents clarify the token's nature as a debt asset. This step combines on-chain hash verification with off-chain encrypted storage of PII to ensure compliance.

4. Token Issuance and Financing: Tokens are displayed via a UI or protocol platform for on-chain investment. Investors complete KYC, invest using stablecoins or APT, receive RWA tokens as proof, and receive periodic repayments of principal and interest.

5. Yield Distribution and Asset Liquidation: Borrowers make scheduled repayments. Funds are collected by the originator, transferred to the SPV, and mapped on-chain via an oracle or smart contract for distribution to token holders. Smart contracts automatically split interest based on holding比例. Upon maturity, principal is returned automatically or asset rollover is arranged. If the token structure allows, trading on DEXs or RWA-specific markets may be possible, often with lock-up periods.

Aptos' Competitive Advantages in the RWA Sector

Technical Advantages: The Potential of High-Performance Blockchain for Finance

Aptos's technological architecture gives it unique advantages in the RWA sector, particularly for private credit tokenization.

* High Throughput & Low Latency: Utilizing the Block-STM parallel execution engine, Aptos achieves high throughput and sub-second finality. This supports large-scale loan issuance, real-time repayment distribution, and on-chain audits crucial for RWA.

* Low Transaction Costs: Average transaction fees below $0.01 are critical for RWA scenarios involving frequent on-chain operations, keeping operational costs manageable.

* Modular Architecture & Scalability: The separation of consensus, execution, and storage layers allows for independent optimization, which is vital for managing the complex metadata associated with private credit.

Ecological Layout: Institutional Backing & Regulatory Friendliness

Aptos's ecosystem strategy, involving partnerships with traditional finance giants and DeFi expansion, significantly boosts its competitiveness.

* Institutional Cooperation & Backing: Collaborations with entities like Ondo Finance, Franklin Templeton, and Libre have brought credibility, funding, and technical expertise to the Aptos RWA ecosystem, helping its TVL reach $5.4 billion.

* Regulatory Friendliness: By partnering with compliance platforms, Aptos incorporates features like on-chain identity verification and asset tracking, helping projects meet KYC/AML and other regulatory requirements effectively.

* Emerging Market Focus: Aptos's RWA strategy targets emerging markets with poor financial inclusion. Assets originated by partners like BSFG on Aptos (via Pact) provide diversified financing solutions for these markets, significantly driving the growth of Aptos's RWA TVL.

Conclusion

Aptos's rapid rise in the RWA sector is attributed to its technical strengths and strategic ecosystem development. Its RWA TVL reached $5.38 billion in June 2025, ranking third among public chains, primarily driven by private credit. The Pact protocol has been a major contributor. Private credit, as a growth engine for RWA, gains composability through tokenization, allowing credit tokens to participate in various DeFi strategies. Compared to Treasury bonds, private credit's higher yields and clear cash flows make it more attractive. Aptos's low fees and fast finality support real-time lending and settlement. Future integrations, like with Aave, could further unlock potential.

Currently, tightening spreads in traditional finance are pushing institutions towards on-chain solutions. Aptos addresses the SME financing gap in emerging markets. Looking ahead, with optimizing regulations and an expanding DeFi ecosystem, Aptos is poised for further growth, potentially adding $5 billion in RWA TVL by 2026. Through the synergy of its technology and ecosystem, Aptos is demonstrating sustained potential in the private credit arena.