The RWA market has broad development prospects, and Aptos has emerged as a strong competitor.

Real World Asset Tokenization (RWA) is an area of significant market interest, yet its potential to connect massive assets in traditional markets has not been fully realized. Data shows that the total market value of RWA assets in the crypto industry is only $24 billion, despite a substantial growth of 56% in the first half of this year. This indicates that the development story of RWA is far from over; on the contrary, it has yet to truly begin. As more types of assets are tokenized in the future, RWA is expected to enter a new stage of development.

During this crucial period, Aptos has demonstrated incredible growth momentum. In the past 30 days, the total value locked (TVL) in RWA on the Aptos chain has increased by 56.4%, reaching $538 million, rising to the third position among public chains. With more investment opportunities emerging, Aptos is expected to gain a favorable position in the next stage of competition in RWA.

Private credit dominates the current RWA market

Private credit accounts for 58% of RWA assets, becoming the most关注 asset class, followed by U.S. Treasuries. Private credit assets primarily exist in on-chain form but generally lack trading liquidity. U.S. Treasuries face competitive pressure from interest-bearing stablecoins, which are collateralized by Treasuries and 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 financial 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 access restrictions. For example, the audit process for traditional private credit is cumbersome, transaction costs are high, and small and medium-sized enterprises often struggle to obtain financing due to a lack of credit history.

The encryption protocol reduces costs by issuing and managing assets on-chain, eliminating multiple layers of intermediaries, and increases transparency by providing real-time performance data.

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, SMEs 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 issued to a logistics company with a term of 12 months and 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 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, maturity date, collateral asset details, and default handling mechanisms. The smart contract supports 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 vehicles (SPVs) or virtual asset service providers (VASPs) as legal custodians in specific jurisdictions. 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 state that the tokens are debt assets, without accompanying voting rights or equity attributes.

4. Token Issuance and Financing

Show tokens through the user interface or protocol platform and accept on-chain investments. After investors complete KYC verification, they use specific cryptocurrencies for investment, receiving RWA tokens as proof, and collecting repayment principal and interest on schedule.

5. Profit Distribution and Asset Settlement

Borrowers repay according to the plan, and the funds are collected by the issuer and transferred to the SPV. They are then mapped to the blockchain 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, the principal is automatically returned or arrangements for asset continuation are made.

Aptos's Competitive Advantages in the RWA Track

Technical Advantages: Financial Application Potential of High-Performance Blockchain

Aptos, as a new generation Layer 1 blockchain, brings unique advantages to the RWA track with its technical architecture, especially in the scenario of private credit tokenization:

1. High throughput and low latency: Aptos uses the Block-STM parallel execution engine, stabilizing at 4000-5000 TPS in actual production environments, far exceeding most public chains. The final confirmation time for transactions is only 650 milliseconds, supporting instant settlement.

2. Low transaction costs: Aptos's transaction fees average less than $0.01, which is beneficial for 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, suitable for complex RWA asset management needs.

Ecological Layout: Institutional Endorsement and Regulatory Friendly

Aptos has significantly enhanced its competitiveness by collaborating with traditional financial giants and expanding its DeFi ecosystem:

1. Institutional Collaboration: Aptos has partnered with several well-known financial institutions to introduce various RWA products, enhancing its credibility in the compliance field.

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

3. Emerging Market Positioning: Aptos's RWA strategy focuses on emerging markets, particularly in areas with insufficient financial inclusion, driving the rapid development of its RWA ecosystem.

Summary

Aptos's rapid rise in the RWA space is attributed to its technological advantages and ecological layout. Private credit, as a growth engine for RWA, achieves on-chain composability through tokenization, allowing credit tokens to participate in the circular lending, leverage strategies, and liquidity pools of DeFi protocols, generating considerable returns. Aptos's low transaction fees and fast confirmation times support real-time lending and settlement, and future integrations with more DeFi protocols may further activate its potential.

Currently, the interest rate spread in traditional financial markets is tightening, prompting institutions to turn to on-chain solutions. Aptos is filling the financing gap for small and medium-sized enterprises by serving emerging markets. With the optimization of the regulatory environment and the expansion of the DeFi ecosystem, Aptos is expected to add hundreds of millions in RWA TVL within the next year. Through the synergy of technology and ecosystem, Aptos is demonstrating sustained growth potential in the private credit sector.