Boom in RWA Tokenization Anticipated Following Passage of GENIUS Act

Regulatory Environment Boosts RWA Tokenization

Real-world asset (RWA) tokenization is gaining momentum as a significant innovation on Wall Street, with the recent approval of pro-industry legislation, including the US GENIUS Act. Solomon Tesfaye, the chief business officer of Aptos Labs, highlighted the impact of this legislation on institutional interest in the crypto space. The GENIUS Act signifies Congress's support for responsible blockchain innovation, fostering increased confidence among institutions looking to incorporate digital assets into their long-term strategies.

US House of Representatives Passes GENIUS Act

Following some initial resistance during the Republicans’ “crypto week,” the US House of Representatives approved the GENIUS Act and two other crypto-related bills. This legislation, aimed at regulating the $260 billion stablecoin market, was signed into law by US President Donald Trump. Stablecoins, which are often excluded from RWA industry metrics, play a crucial role in the tokenization landscape by offering predictability, lower transaction costs, liquidity, and bridging the gap between traditional finance and DeFi.

A favorable regulatory landscape in the US is expected to drive further growth and adoption of tokenized assets. Private credit and US Treasury debt have been at the forefront of tokenized asset growth, with private credit accounting for nearly 60% of the RWA market as of June. Tokenized US Treasurys make up the second-largest segment at around 28%. Aptos has emerged as a central hub for RWA activity, with the value of tokenized RWAs on the Aptos blockchain surpassing $540 million in late June.

Tokenization Continues to Evolve

The evolution of tokenized assets has primarily focused on digitizing legacy financial instruments to improve efficiency and accessibility. As more assets are tokenized, they settle faster, trade more efficiently, and can be easily fractionalized. With the backing of strong regulatory support and growing institutional interest, the tokenization of real-world assets is expected to experience significant growth in the coming months.