The RWA market has enormous growth potential, and Aptos has performed remarkably.

Physical assets ( RWA ), as an emerging track in the crypto industry, have attracted much attention, but currently have not fully demonstrated their potential. Data shows that the total market value of RWA assets in the current crypto industry is only $24 billion, although it has risen by 56% in the first half of this year. This indicates that the RWA market is still in its infancy, and in the future, with more traditional assets being tokenized, it is expected to enter a phase of rapid development.

Against this backdrop, the Aptos public chain has stood out. In the past 30 days, the total locked value of RWA on the Aptos chain has risen by 56.4%, reaching $538 million, jumping to third place among public chains. With more DeFi protocols moving in, Aptos's competitive advantage in the RWA field is expected to be further highlighted.

Private credit dominates the current RWA market

Private credit accounts for 58% of RWA assets, making it the most significant asset class currently, followed by U.S. Treasury bonds. Private credit mainly exists in on-chain form and has lower liquidity; whereas U.S. Treasury bonds face competition 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 high returns, faces issues such as high costs, low efficiency, and high entry barriers. Cryptocurrency protocols act as intermediaries, issuing and managing assets on-chain, which lowers costs and increases transparency.

Private Credit Asset Tokenization Process

1. Off-chain credit asset generation: The asset issuer is responsible for generating off-chain credit assets, including signing loan agreements, setting collateral assets, and formulating repayment plans.

2. Build the on-chain token structure: Map loans to on-chain tokens through the RWA protocol, which can take the form of NFTs, SFTs, or ERC-20, etc. The token metadata includes borrower information, loan details, etc.

3. Compliance Packaging: Establish special purpose entities as legal custodians to ensure compliance with regulatory requirements. Investors need to complete KYC/AML reviews.

4. Token Issuance and Financing: Display tokens on the platform and accept on-chain investments. Investors can use cryptocurrency to invest after completing KYC.

5. Profit Distribution and Asset Liquidation: After the borrower repays, the distribution is automatically allocated to token holders via smart contracts. Supports maturity liquidation or renewal.

Aptos's Competitive Advantages in the RWA Space

( technical advantages

Aptos, as a new generation public chain, has the following technical characteristics:

• High throughput and low latency: Theoretical TPS can reach 150,000, while the actual stable range is 4,000-5,000 TPS, with a transaction confirmation time of only 650 milliseconds.
• Low transaction costs: average fees are less than $0.01.
• Modular architecture: supports complex asset management.

These features make Aptos very suitable for RWA scenarios, especially for private credit tokenization.

) ecological layout

Aptos rapidly expands the RWA ecosystem by collaborating with traditional financial institutions:

• Introduce Ondo Finance's USDY stablecoin
• Launched an on-chain currency fund in collaboration with Franklin Templeton
• Collaborate with Libre to promote securities tokenization

These collaborations not only bring financial and technical support but also enhance Aptos's compliance.

regulatory friendly

Aptos focuses on compliance by collaborating with compliance platforms and integrating on-chain identity verification and asset tracking features. As the global regulatory environment gradually becomes clearer, Aptos is expected to become an ideal choice for a regulatory-friendly public chain.

emerging market positioning

Aptos's RWA strategy focuses on emerging markets, particularly in areas with insufficient financial inclusion. By tokenizing private credit products, it provides diversified financing solutions for these markets, driving the development of the Aptos RWA ecosystem.

Summary

Aptos's rapid rise in the RWA sector stems from its technological advantages and ecological layout. Private credit serves as the main rise engine, achieving on-chain composability through tokenization, generating considerable returns. Aptos's low transaction fees and fast confirmation times support real-time lending and settlement.

With the tightening of interest rate spreads in traditional financial markets, institutional investors are turning to on-chain solutions. Aptos is filling the financing gap for small and medium-sized enterprises by serving emerging markets. In the future, as the regulatory environment improves and the DeFi ecosystem expands, Aptos is expected to continue its rise in the RWA field, demonstrating immense potential.