As a track with high hopes from the market, RWA has not yet demonstrated the ability to connect trillions of assets in the traditional market. According to rwa.xyz data, the total market value of RWA assets in the crypto industry is only $24 billion, which is still reached after a 56% surge in the first half of this year, so it can be seen that the narrative of RWA is not over but has not yet begun. On the eve of dawn, Aptos has achieved corner overtaking, and the on-chain RWA TVL has increased by 56.4% in the past 30 days, reaching $538 million, ranking third on the public chain. With the arrival of Aave, RW assets on Aptos are likely to usher in more investment opportunities, putting Aptos in a favorable position in the next phase of RWA competition.

Source: on-aptos

Private credit is still the current mainstream path

Private credit accounted for 58% of RWA assets, making it the most watched asset class, followed by U.S. Treasuries. Private credit assets mainly exist in the form of on-chain, and most of them lack transaction liquidity; U.S. Treasuries, on the other hand, are under competitive pressure from interest-bearing stablecoins, which are collateralized by Treasuries and offer similar yield characteristics.

What is Private Credit? Private credit refers to loans provided to enterprises or individuals by non-bank institutions or investors in the non-public market. In traditional finance, private credit attracts a large number of institutional investors due to its flexibility and high yields. However, it also faces pain points such as high costs, inefficiencies, and access restrictions. For example, traditional private credit has a cumbersome audit process, high transaction costs, and SMEs often struggle to obtain financing due to a lack of credit history.

Crypto protocols reduce costs by eliminating multi-layer intermediaries by acting as intermediaries, with assets issued and managed on-chain as a core business model, and increased transparency by providing real-time representation of lending pools and underlying assets.

Private credit asset tokenization process

1. Off-chain credit asset generation

The Originator is responsible for generating off-chain credit assets. Private credit institutions (e.g., BSFG), SME financing platforms, or regional credit market operators enter into loan agreements (specifying principal, interest rate, term), set backed assets (e.g., accounts receivable or real property, need to be assessed for value and liquidity), set repayment plans and default terms, and review borrowers' financial position (including cash flow, debt ratio, and credit rating, such as S&P score BB+). For example, a $1 million loan is issued to a logistics company with a 12-month term and an annualized interest rate of 12%, secured by $1.1 million in accounts receivable. This step ensures that the asset meets traditional financial standards, setting the stage for subsequent tokenization.

2. Build an 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 and indivisible token that records full asset ownership), SFT (asset shareization, allowing investors to hold a portion of the equity such as a 10% share), or ERC-20 (loan pool is packaged into tradable fund shares, suitable for institutional investors). The token metadata covers the borrower's anonymous identification (GDPR compliant), principal amount (US$1 million), interest rate (12% annualized), repayment frequency (monthly), maturity date (July 2026), collateral asset details, and default handling mechanism. Smart contracts support repayment status management, automatic revenue distribution, and early redemption or peer-to-peer transfer (compliance verification required).

3. Compliant packaging

The tokenization process is subject to regulatory compliance. Set up a special purpose entity (SPV) or virtual asset service provider (VASP) in the Cayman Islands, British Virgin Islands, or Singapore as the legal custodian, corresponding to the on-chain token. All investors are required to complete KYC/KYB and AML reviews, and non-accredited investors are subject to Reg D and other regulations for access and transfer. Off-chain disclosure documents (such as a PDF term sheet or offering memorandum) clearly state that the token is a debt asset and does not come with voting rights or equity attributes. This step combines on-chain hash verification and off-chain encrypted storage of personally identifiable information (PII), ensuring compliance with UETA.

4. Token Issuance and Financing

Display tokens through the user interface or protocol platform to accept on-chain investments. Investors need to complete KYC verification, use USDC, APT or USDT to invest, obtain RWA tokens as proof, and collect repayment principal and interest on a monthly or quarterly basis. For example, the Pact platform BSFG-EM-1 has an estimated annualized rate of return of 64.05%, covering the financing needs of small and micro enterprises in emerging markets.

5. Income distribution and asset liquidation

Borrowers repay as planned, and the funds are collected by the issuer and transferred to the SPV, which is mapped on-chain through oracles or smart contracts and distributed to token holders. Smart contracts automatically split interest based on the holding ratio (such as distributing 12% annualized income according to a 10% share), and automatically return the principal or arrange asset renewal after the loan maturity. It can be traded on decentralized exchanges (DEXs) or RWA-specific markets if the token structure (such as SFT) allows, but usually has a lock-up period and only supports peer-to-peer transfers.

Aptos' competitive advantage in the RWA track

Technical advantages: The potential for financial applications of high-performance blockchain

As a new generation of Layer 1 blockchain, Aptos' technical architecture has become its unique advantage in the RWA track, especially in the scenario of private credit tokenization. The following is an analysis of the core technical characteristics:

High throughput with low latency

Aptos uses the Block-STM parallel execution engine to achieve efficient transaction processing through optimistic concurrency control. Official test data shows that Aptos' theoretical throughput can reach 150,000 transactions per second (TPS), and it is stable at 4,000-5,000 TPS in the actual production environment, far surpassing Ethereum and Solana. In private credit scenarios, high throughput supports large-scale loan issuance, real-time repayment allocation, and on-chain auditing, ensuring transaction efficiency.

In addition, Aptos' transaction finality time is only 650 milliseconds. This sub-second confirmation speed is crucial for RWA assets that require instant settlement, such as yield distribution for loan pools. For example, the Pact protocol achieves T+0 settlement on Aptos, which greatly reduces the cost of capital occupation compared to T+2 or T+3 in traditional finance.

Low transaction costs

Aptos transaction fees average less than $0.01. The low-cost nature is particularly critical in the RWA scenario, as tokenized assets involve frequent on-chain operations (e.g., loan issuance, repayment allocation, compliance verification). Taking Pact as an example, its on-chain loan management requires real-time updates on repayment status, and low fees ensure controllable operating costs.

Modular architecture and scalability

Aptos' modular design separates the consensus, execution, and storage layers, allowing layers to optimize independently, which is crucial for RWA asset management because private credit involves complex metadata (e.g., borrower information, repayment plans).

Ecological layout: institutional endorsement and regulatory friendliness

Aptos' ecological layout in the RWA track has significantly enhanced its competitiveness through cooperation with traditional financial giants and the expansion of the DeFi ecosystem.

Institutional cooperation and endorsement

As of June 2025, Aptos' total RWA locked value (TVL) reached $540 million, ranking third among public chains, behind Ethereum and ZKsync Era. This achievement is due to the participation of several traditional financial institutions:

In July last year, Aptos officially announced the introduction of Ondo Finance's USDY into the ecosystem and integrated it into major DEX and lending applications. In October last year, Aptos announced that Franklin Templeton had launched the Franklin On-Chain U.S. Government Monetary Fund (FOBXX), represented by the BENJI token, on Aptos Network. In addition, Aptos has also reached a cooperation with Libre to promote security tokenization.

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

Regulatory friendliness

Private credit tokenization involves complex compliance requirements, such as KYC/AML reviews, Reg D/Reg S compliance, etc. Aptos has built-in on-chain authentication and asset tracking features by partnering with compliance platforms. For example, the Pact protocol stores personally identifiable information (PII) through off-chain encryption combined with on-chain hash verification, complying with UETA requirements and ensuring the legal validity of loan tokens.

In 2025, the global regulatory environment will gradually become clearer. Europe's MiCA regulation provides a clear framework for crypto assets, and the United States' GENIUS Act creates favorable conditions for stablecoin and RWA projects. Aptos' low fees and fast confirmation features make it an ideal choice for regulatory-friendly public chains. For example, Aptos was selected by the state of Wyoming as the highest technical score candidate chain for the stablecoin project WYST, and plans to use Aptos to issue compliant stablecoins and loan tokens, with an expected coverage of $100 million in assets by 2026.

Positioning in emerging markets

Aptos' RWA strategy focuses on emerging markets, particularly in regions with inadequate financial inclusion. As the primary asset issuer of the Pact protocol on the Aptos chain, BSFG 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, provides short-term, micro-consumer loans and revolving lines of credit for individual consumers and micro operators in emerging markets, with a scale of US$160 million, a single loan amount of hundreds to thousands of dollars, a term of 3-12 months, and an interest rate of up to 64.05%. BSFG-EM-NPA-1 and BSFG-EM-NPA-2 are special pools for bad debts or defaulted loans, with a scale of US$188 million, limited to qualified investors, and undisclosed benefits. BSFG-CAD-1 is a Canadian residential property mortgage loan with a size of US$44 million, divided into senior and subordinated structures with an interest rate of 0.13% (possibly a low-risk senior loan), backed by real estate but locked in a state of locked and limited liquidity. BSFG-AD-1 provides operating loans for small and micro enterprises in the UAE, with a scale of US$16 million and an interest rate of 15.48%, serving high-growth markets. BSFG-KES-1 targets the Kenyan retail credit market with a scale of US$5.6 million and an interest rate of 115.45%.

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

summary

Aptos' rapid rise in the RWA track is due to its technical advantages and ecological layout, with its RWA TVL reaching US$538 million in June 2025, ranking third in the public chain, mainly driven by private credit. By launching an on-chain debt pool, Pact Protocol has contributed over $420 million in assets (accounting for 77% of Aptos RWA), significantly enhancing its ecological competitiveness. As an RWA growth engine, private credit achieves on-chain composability through tokenization, allowing credit tokens to participate in DeFi protocols' revolving loans, leverage strategies, and liquidity pools, generating 6%-15% annualized returns. Compared with treasury bonds (under competitive pressure from interest-bearing stablecoins), private credit is more favored by the market due to its high yield and clear cash flow. Aptos' low transaction fees (under $0.01) and 650ms final confirmation time support real-time lending and settlement, and future integration with Aave may further activate Pact's potential.

Currently, the tightening spreads in traditional financial markets have prompted institutions to turn to on-chain solutions, and Aptos has filled the financing gap for SMEs 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 in 2026. Aptos is showing sustained growth potential in the private credit track through the synergy of technology and ecology.

About Movemaker

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

Disclaimer:

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