The RWA market is experiencing slow growth, with Aptos emerging as a strong contender.

Tokenization of physical assets ( RWA ) is a highly anticipated field that has yet to achieve effective connection with the trillion-dollar traditional market. Data shows that the total market value of RWA assets in the crypto industry is only $24 billion, even with a significant rise of 56% in the first half of this year. This indicates that the development of RWA is still in its early stages, and in the future, as more asset classes are tokenized, this field is expected to enter a new stage of development.

During this critical period, a certain public chain has performed outstandingly, with its total locked value of RWA reaching ( TVL ) rising by 56.4% in the recent 30 days, reaching 538 million USD, and ranking third among public chains. With the addition of mainstream lending protocols, the competitive advantage of this public chain in the RWA field may further strengthen.

Private credit remains dominant

Private credit accounts for 58% of RWA assets, making it the most关注 asset class at present, followed by U.S. Treasury bonds. Private credit assets primarily exist in on-chain form and mostly lack trading liquidity; meanwhile, U.S. Treasury bonds face competitive pressure from interest-bearing stablecoins.

Private credit refers to loans provided by non-bank institutions to businesses or individuals in the private market. It has attracted a large number of institutional investors in traditional finance due to its flexibility and high returns, but it also faces issues such as high costs, low efficiency, and high barriers to entry.

The encryption protocol acts as an intermediary, with the core business model of issuing and managing assets on-chain, reducing costs by minimizing intermediaries, and enhancing transparency by real-time disclosure of loan pool and underlying asset performance.

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, small and medium-sized enterprise financing platforms, or regional credit market operators enter into loan agreements, set collateral assets, establish repayment plans and default terms, and review the borrower's financial condition. This step ensures that the assets meet traditional financial standards, laying the foundation for subsequent tokenization.

2. Build 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 types. 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 profit distribution, and transfer.

3. Compliance Packaging

The tokenization process must comply with regulatory requirements. Typically, a special purpose vehicle ( SPV ) or a virtual asset service provider ( VASP ) is established in specific regions as a legal custodian. Investors are required to complete KYC/KYB and AML reviews and are subject to relevant regulatory restrictions. Off-chain disclosure documents clarify the nature of the tokens, combined with on-chain hash verification and off-chain encrypted storage of personal information to ensure compliance.

4. Token Issuance and Financing

Showcase tokens through the platform and accept on-chain investments. After investors complete KYC verification, they can invest using digital currency, receive RWA tokens as proof, and regularly collect repayment principal and interest.

5. Profit Distribution and Asset Settlement

The borrower repays according to the plan, and the funds are transferred on-chain by the issuer and SPV, allocated to token holders. The smart contract automatically splits the interest, and the principal is returned or arranged for rollover at the loan's maturity. Some token structures allow trading in specific markets, but usually, a lock-up period is set.

The Advantages of Emerging Public Chains in the RWA Track

technical advantages

A certain new generation public chain adopts an efficient technical architecture, showcasing unique advantages in the RWA field:

• High throughput and low latency: Theoretical throughput can reach 150,000 TPS, while in actual environments it stabilizes at 4,000-5,000 TPS. The final confirmation time for transactions is only 650 milliseconds, supporting instant settlement.
• Low transaction costs: average transaction fees are below $0.01, which is conducive to frequent on-chain operations.
• Modular architecture: separation of consensus, execution, and storage layers to accommodate complex RWA asset management needs.

ecological layout

The public chain has enhanced its competitiveness in the RWA field by collaborating with traditional financial institutions and expanding the DeFi ecosystem:

• Institutional collaboration: Introduce assets from multiple traditional financial institutions, such as a government money market fund from a well-known asset management company.
• Regulatory friendly: Built-in on-chain identity verification and asset tracking functions, compliant with various regulatory requirements.
• Emerging Market Positioning: Focus on regions with insufficient financial inclusion, providing diversified financing solutions.

Summary

The rapid rise of a certain emerging public blockchain in the RWA field is attributed to its technological advantages and ecological layout, with its RWA TVL reaching $538 million, ranking third among public blockchains. The main assets come from private credit, achieving on-chain composability through tokenization, generating considerable returns. The low fees and fast confirmations of this public blockchain support real-time lending and settlement, and future integration with mainstream DeFi protocols may further unleash its potential.

As traditional financial market interest rate spreads tighten, institutional investors are turning to on-chain solutions. This public chain fills the financing gap for small and medium-sized enterprises by servicing emerging markets. In the future, with the optimization of the regulatory environment and the expansion of the DeFi ecosystem, this public chain is expected to maintain a continuous rise in the RWA sector.