According to Cointelegraph, the tokenization of real-world assets (RWA) is rapidly becoming a significant innovation on Wall Street. The recent passage of the US GENIUS Act is expected to accelerate growth in this sector, as noted by Solomon Tesfaye, the newly appointed chief business officer at Aptos Labs. Tesfaye highlighted the legislation's appeal to institutional players who are increasingly interested in entering the crypto space. He emphasized that the GENIUS Act represents a strong signal from Congress to support responsible blockchain innovation.
The US House of Representatives passed the GENIUS Act, along with two other crypto-related bills, following some political holdouts 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, often backed by government bonds and other tangible assets, are considered a key on-ramp 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 has increased by nearly $3 billion over the past week, reaching over $261 billion.
Tesfaye believes that a favorable regulatory environment in the US will be a major catalyst for the continued evolution and adoption of tokenized assets. To date, much of the growth in tokenized assets has been concentrated in private credit and US Treasury debt. A recent report co-authored by RedStone, Gauntlet, and RWA.xyz indicates that private credit made up nearly 60% of the RWA market as of June, with tokenized US Treasurys comprising the second-largest segment at approximately 28%. Tesfaye noted that the initial adoption of tokenization has focused on bringing legacy financial assets onto modern digital platforms, with treasuries and private credit being ideal starting points.
Looking ahead, Tesfaye envisions a future where RWAs expand into more complex asset classes such as derivatives, intellectual property, or esoteric asset classes. As the financial infrastructure matures, the focus will shift from access and efficiency to unlocking entirely new financial products and global participation. Aptos is emerging as a hub for RWA activity, with the value of tokenized RWAs on the Aptos blockchain surpassing $540 million in late June. This growth is led by issuers such as Berkeley Square of the PACT Consortium and BlackRock's BUIDL, which expanded to Aptos less than a year ago.
