RWA, as a highly anticipated sector in the market, has yet to demonstrate its ability to connect the trillion-dollar assets in traditional markets. According to data from rwa.xyz, the total market value of RWA assets in the crypto industry is only $24 billion, which is still the result of a 56% surge in the first half of this year. Therefore, it can be understood that the narrative of RWA has not ended but has yet to begin. As more categories of assets are tokenized and US stocks go on-chain in the future, RWA will truly enter the next stage. At this dawn before the day breaks, Aptos has already achieved a significant lead, with on-chain RWA TVL growing by 56.4% in the past 30 days, reaching $538 million, and rising to the third position among public chains. With the arrival of Aave, RWA assets on Aptos are likely to see more investment opportunities, placing Aptos in a favorable position for the next stage of competition in RWA.

Source: on-aptos

Private Credit Remains the Mainstream Path

Private Credit accounts for 58% of RWA assets, making it the most关注的 asset class, followed by U.S. Treasury bonds. Private credit assets mainly exist in on-chain form, often lacking trading liquidity; meanwhile, U.S. Treasury bonds face competitive pressure from interest-bearing stablecoins, which are collateralized by Treasury bonds and offer similar yield characteristics.

What is Private Credit? Private credit refers to loans provided by non-bank institutions or investors to businesses or individuals in the non-public market. In traditional finance, private credit attracts a large number of institutional investors due to its flexibility and high returns. However, it also faces pain points such as high costs, low efficiency, and access restrictions. For example, traditional private credit auditing processes are cumbersome, transaction costs are high, and small and medium-sized enterprises often struggle to obtain financing due to a lack of credit history.

Crypto protocols act as intermediaries, issuing and managing assets on-chain as their core business model, reducing costs by eliminating multiple layers of intermediaries and increasing transparency by providing real-time performance of loan pools and underlying assets.

Tokenization Process of Private Credit Assets

1. Off-chain Credit Asset Generation

The asset issuer (Originator) is responsible for generating off-chain credit assets. Private credit institutions (such as BSFG), small and medium-sized enterprise financing platforms, or regional credit market operators establish loan agreements (specifying principal, interest rate, and term), set collateral assets (such as accounts receivable or real estate, which need to be assessed for value and liquidity), develop repayment plans and default clauses, and review the borrower's financial status (including cash flow, debt ratio, and credit rating, such as S&P rating BB+). For example, a $1 million loan is issued 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 asset meets traditional financial standards, laying the foundation for subsequent tokenization.

2. Constructing On-chain Token Structure

Through RWA protocols (such as Pact), single or multiple loans are mapped to on-chain tokens. Token forms include: NFT (each loan generates a unique indivisible token that records complete asset ownership), SFT (asset fractionalization, allowing investors to hold partial rights, such as a 10% share), or ERC-20 type (loan pools packaged as tradable fund shares, suitable for institutional investors). Token metadata includes the borrower's anonymous identifier (in compliance with GDPR), principal amount ($1 million), interest rate (12% annualized), repayment frequency (monthly), maturity date (July 2026), collateral asset details, and default handling mechanisms. Smart contracts support repayment status management, automatic yield distribution, and early redemption or peer-to-peer transfer (subject to compliance verification).

3. Compliance Packaging

The tokenization process must comply with regulatory requirements. Special purpose entities (SPVs) or virtual asset service providers (VASPs) are established in the Cayman Islands, British Virgin Islands, or Singapore as legal custodians, corresponding to on-chain tokens. All investors must complete KYC/KYB and AML reviews, and non-qualified investors are restricted from access and transfer rights under regulations such as Reg D. Off-chain disclosure documents (such as PDF format term sheets or offering memorandums) clearly state that tokens are debt assets, without voting rights or equity attributes. This step combines on-chain hash verification and off-chain encrypted storage of personally identifiable information (PII) to ensure compliance with UETA.

4. Token Issuance and Financing

Tokens are displayed through user interfaces or protocol platforms, accepting on-chain investments. Investors must complete KYC verification and invest using USDC, APT, or USDT, receiving RWA tokens as proof, and collecting repayment principal and interest monthly or quarterly. For example, the Pact platform's BSFG-EM-1 has an expected annualized yield of 64.05%, covering the financing needs of small and micro enterprises in emerging markets.

5. Yield Distribution and Asset Settlement

Borrowers repay according to the plan, and funds collected by the issuer are transferred to the SPV, mapped to on-chain via oracles or smart contracts, and distributed to token holders. Smart contracts automatically split interest based on holding proportions (e.g., distributing 12% annualized yield according to a 10% share), and upon loan maturity, automatically return principal or arrange for asset renewal. If the token structure (such as SFT) allows, it can be traded on decentralized exchanges (DEX) or RWA-specific markets, but usually has a lock-up period and only supports peer-to-peer transfers.

Aptos' Competitive Advantages in the RWA Sector

Technical Advantages: Financial Application Potential of High-Performance Blockchain

As a next-generation Layer 1 blockchain, Aptos' technical architecture is a unique advantage in the RWA sector, especially in the tokenization of private credit. The following analysis focuses on core technical features:

High Throughput and Low Latency

Aptos employs a Block-STM parallel execution engine, achieving efficient transaction processing through optimistic concurrency control. Official testing data shows that Aptos' theoretical throughput can reach 150,000 transactions per second (TPS), with stable production environments maintaining 4,000-5,000 TPS, far exceeding Ethereum and Solana. In private credit scenarios, high throughput supports large-scale loan issuance, real-time repayment distribution, and on-chain auditing, ensuring transaction efficiency.

Additionally, Aptos' transaction final confirmation time is only 650 milliseconds. This sub-second confirmation speed is crucial for RWA assets that require instant settlement (such as yield distribution from loan pools). For example, the Pact protocol achieves T+0 settlement on Aptos, significantly reducing capital occupation costs compared to traditional finance's T+2 or T+3.

Low Transaction Costs

Aptos' transaction fees average below $0.01. This low-cost feature is particularly critical for RWA scenarios, as tokenized assets involve frequent on-chain operations (such as loan issuance, repayment distribution, and compliance verification). For instance, Pact's on-chain loan management requires real-time updates on repayment status, and low fees ensure controllable operational costs.

Modular Architecture and Scalability

Aptos' modular design separates consensus, execution, and storage layers, allowing each layer to be independently optimized, which is crucial for RWA asset management as private credit involves complex metadata (such as borrower information and repayment plans).

Ecosystem Layout: Institutional Endorsement and Regulatory Friendliness

Aptos' ecosystem layout in the RWA sector significantly enhances its competitiveness through partnerships with traditional financial giants and the expansion of the DeFi ecosystem.

Institutional Collaboration and Endorsement

As of June 2025, Aptos' total locked value (TVL) in RWA reached $538 million, ranking third among public chains, only behind Ethereum and ZKsync Era. This achievement is attributed to the participation of several traditional financial institutions:

In July last year, Aptos announced the integration of Ondo Finance's USDY into its ecosystem, along with major DEX and lending applications. In October last year, Aptos announced that Franklin Templeton had launched the Franklin on-chain U.S. government money market fund (FOBXX) represented by the BENJI token on the Aptos Network. Additionally, Aptos has partnered with Libre to promote security tokenization.

These collaborations not only bring funding and technical support to Aptos but also enhance its credibility in the compliance field.

Regulatory Friendliness

Tokenization of private credit involves complex compliance requirements, such as KYC/AML reviews and Reg D/Reg S compliance. Aptos has built in on-chain identity verification and asset tracking features through partnerships with compliance platforms. For example, the Pact protocol combines off-chain encrypted storage of personally identifiable information (PII) with on-chain hash verification to comply with UETA requirements, ensuring the legal validity of loan tokens.

By 2025, the global regulatory environment is gradually becoming clearer. The EU's MiCA regulations provide a clear framework for crypto assets, while the U.S. GENIUS Act creates favorable conditions for stablecoin and RWA projects. Aptos' low fees and fast confirmation features make it an ideal choice for a regulatory-friendly public chain. For instance, Aptos was selected by the state of Wyoming as the top-rated technical candidate chain for the stablecoin project WYST and plans to utilize Aptos to issue compliant stablecoins and loan tokens, expected to cover $100 million in assets by 2026.

Emerging Market Positioning

Aptos' RWA strategy focuses on emerging markets, particularly in regions with insufficient financial inclusion. BSFG, as the main asset issuer of the Pact protocol on the Aptos chain, provides diversified financing solutions for emerging markets and specific regions through tokenized private credit products, significantly promoting the development of Aptos' RWA ecosystem.

Its flagship product, BSFG-EM-1, targets individual consumers and small business operators in emerging markets, offering short-term, small consumer loans and revolving credit lines, with a scale of $160 million, single loan amounts ranging from hundreds to thousands of dollars, terms of 3-12 months, and interest rates as high as 64.05%. BSFG-EM-NPA-1 and BSFG-EM-NPA-2 are special pools for bad debts or defaulted loans, with a scale of $188 million, limited to qualified investors, and returns not disclosed. BSFG-CAD-1 is a mortgage loan for Canadian residential properties, with a scale of $44 million, divided into senior and junior structures, with an interest rate of 0.13% (possibly low-risk senior loans), backed by real estate but in a locked state, with limited liquidity. BSFG-AD-1 targets small businesses in the UAE, providing operational loans with a scale of $16 million and an interest rate of 15.48%, serving high-growth markets. BSFG-KES-1 targets the retail credit market in Kenya, with a scale of $5.6 million and an interest rate of 115.45%.

These products achieve efficient issuance and transparent management through Pact's on-chain infrastructure, contributing 77% (approximately $420 million) to Aptos' RWA TVL.

Conclusion

Aptos' rapid rise in the RWA sector is attributed to its technical advantages and ecosystem layout, with its RWA TVL reaching $538 million by June 2025, ranking third among public chains, primarily driven by private credit. The Pact protocol has contributed over $420 million in assets (accounting for 77% of Aptos RWA) by launching on-chain debt pools, significantly enhancing ecosystem competitiveness. Private credit, as the growth engine for RWA, achieves on-chain composability through tokenization, allowing credit tokens to participate in DeFi protocols' revolving loans, leverage strategies, and liquidity pools, generating annualized returns of 6%-15%. Compared to Treasury bonds (which face competitive pressure from interest-bearing stablecoins), private credit is favored by the market for its high returns and clear cash flows. Aptos' low transaction fees (below $0.01) and 650-millisecond final confirmation time support real-time lending and settlement, and future integration with Aave may further activate Pact's potential.

Currently, the tightening of interest rate spreads in traditional financial markets is prompting institutions to turn to on-chain solutions, and Aptos is filling 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. Through the synergy of technology and ecosystem, Aptos is demonstrating sustained growth potential in the private credit sector.

About Movemaker

Movemaker is the first official community organization authorized by the Aptos Foundation, jointly initiated by Ankaa and BlockBooster, focusing on promoting the construction and development of the Aptos ecosystem in the Chinese-speaking region. As the official representative of Aptos in the Chinese-speaking area, Movemaker is committed to building a diverse, open, and prosperous Aptos ecosystem by connecting developers, users, capital, and numerous ecosystem partners.

Disclaimer:

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