Tokenization of RWA is gaining momentum with the passage of the U.S. GENIUS Act.
According to Cointelegraph, the tokenization of real-world assets (RWA) is rapidly becoming a significant innovation on Wall Street. The recent passage of the U.S. GENIUS Act is expected to accelerate growth in this sector, as noted by Solomon Tesfaye, the newly appointed Chief Business Officer of Aptos Labs. Tesfaye emphasized the appeal of the legislation for institutional players who are increasingly interested in entering the crypto space. He highlighted that the GENIUS Act is a strong signal from Congress in support of responsible innovation in blockchain.
The U.S. House of Representatives passed the GENIUS Act along with two other cryptocurrency-related bills after some political delays during the Republicans' "crypto week." The legislation, which establishes a regulatory framework for the $260 billion stablecoin market, was signed into law by U.S. President Donald Trump. Stablecoins, which are often backed by government bonds and other tangible assets, are considered a key element for the future growth of tokenization, offering predictability, lower transaction costs, greater liquidity, and a bridge between traditional finance and decentralized finance (DeFi). The total value of stablecoins increased by nearly $3 billion over the past week, reaching over $261 billion.
Tesfaye believes that a favorable regulatory environment in the U.S. will be a key catalyst for the further evolution and adoption of tokenized assets. To date, most of the growth in tokenized assets has been concentrated in private lending and U.S. government debt. A recent report co-authored by RedStone, Gauntlet, and RWA.xyz indicates that private credit accounted for nearly 60% of the RWA market as of June, while tokenized U.S. government securities made up the second largest segment at approximately 28%. Tesfaye noted that initial adoption of tokenization is focused on transferring traditional financial assets to modern digital platforms, with government securities and private credit being ideal starting points.
Looking to the future, Tesfaye envisions a future where RWA expands into more complex asset classes such as derivatives, intellectual property, or aesthetic asset classes. As the financial infrastructure matures, the focus will shift from access and efficiency to unveiling entirely new financial products and global participation. Aptos is becoming a hub of RWA activity, with the value of tokenized RWA on the Aptos blockchain exceeding $540 million at the end of June. This growth is supported by issuers such as the Berkeley Square consortium of PACT and BlackRock BUIDL, which expanded onto Aptos less than a year ago.