The RWA market has enormous potential, and Aptos has emerged strongly.

Real World Asset Tokenization (RWA), as a highly anticipated track, has yet to fully realize its potential to connect traditional markets with trillions of assets. Data platforms indicate that the total market value of RWA assets in the crypto industry is only $24 billion, even with a significant growth of 56% in the first half of this year. This suggests that the development of RWA is still in its early stages, and as U.S. stocks go on-chain and more asset classes achieve tokenization, RWA will enter a new stage of development.

At this crucial time, Aptos is showing strong momentum. In the past 30 days, its total value locked (TVL) in on-chain RWAs has increased by 56.4%, reaching $538 million, and it has climbed to third place in the public chain rankings. As the ecosystem continues to improve, Aptos is expected to gain a favorable position in the next stage of competition for RWAs.

Private credit has become a mainstream asset class

Private credit accounts for 58% of RWA assets, becoming the most关注 asset class, followed by US Treasury bonds. Private credit primarily exists in on-chain form, but mostly lacks trading liquidity. In contrast, US Treasury bonds face competitive pressure from interest-bearing stablecoins, which offer similar yield characteristics.

Private credit refers to loans provided by non-bank institutions or investors to businesses or individuals in the private market. Although traditional private credit has attracted a large number of institutional investors, it also faces issues such as high costs, low efficiency, and access restrictions. Cryptocurrency protocols act as intermediaries, with on-chain issuance and management of assets as the core model, reducing costs and increasing transparency.

Private Credit Asset Tokenization Process

1. Generation of off-chain credit assets: The asset issuer is responsible for generating off-chain credit assets, including signing loan agreements, setting collateral assets, formulating repayment plans, and reviewing the borrower's financial status.

2. Build the on-chain token structure: Map loans to on-chain tokens through the RWA protocol, which can take the form of NFT, SFT, or ERC-20. The token metadata includes the borrower's anonymous identification, principal amount, interest rate, repayment frequency, and other information.

3. Compliance Packaging: Establish special purpose entities or virtual asset service providers as legal custodians to ensure compliance with regulatory requirements. Investors must complete KYC/KYB and AML reviews.

4. Token Issuance and Financing: Display tokens on the protocol platform and accept on-chain investments. Investors can use cryptocurrencies to invest after completing KYC verification and will receive RWA tokens as proof.

5. Profit distribution and asset liquidation: After the borrower repays the loan, the funds are distributed to token holders through a smart contract. The principal is automatically returned upon maturity or arrangements are made for asset continuation.

Technical Advantages of Aptos

Aptos, as a new generation Layer 1 blockchain, demonstrates unique advantages in the RWA track:

1. High throughput and low latency: The theoretical throughput can reach 150,000 TPS, while the actual production environment stabilizes at 4,000-5,000 TPS. The final confirmation time for transactions is only 650 milliseconds, supporting large-scale loan issuance and real-time repayment distribution.

2. Low transaction costs: The average transaction fee is less than $0.01, which is beneficial for frequent on-chain operations.

3. Modular Architecture and Scalability: Separation of consensus, execution, and storage layers, suitable for managing complex RWA asset metadata.

Aptos Ecosystem Layout

1. Institutional Collaboration: Collaborating with traditional financial giants such as Ondo Finance and Franklin Templeton to introduce assets like USDY and BENJI, enhancing compliance and credibility.

2. Regulatory Friendly: By collaborating with compliant platforms, it incorporates on-chain identity verification and asset tracking features, meeting regulatory requirements such as UETA.

3. Emerging Market Positioning: Focus on areas with insufficient financial inclusion, providing diversified financing solutions through asset issuers like BSFG.

Summary

Aptos's rapid rise in the RWA track is attributed to its technological advantages and strategic ecological layout. Private credit, as an engine for RWA growth, achieves on-chain composability through tokenization, generating considerable returns. Aptos's low transaction fees and fast confirmation times support real-time lending and settlement, laying the foundation for future DeFi ecosystem expansion. With the optimization of the regulatory environment, Aptos is expected to continue growing in the private credit track, showcasing significant potential.