US GENIUS Act Sparks Growth in RWA Tokenization

Real-world asset (RWA) tokenization is rapidly emerging as one of Wall Street’s most promising innovations, and with the recent passage of pro-industry legislation, particularly the US GENIUS Act, growth in the sector is poised to accelerate, according to Aptos Labs’ newly appointed chief business officer, Solomon Tesfaye.

In a conversation with Cointelegraph ahead of the landmark passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, Tesfaye emphasized the legislation’s appeal to institutional players increasingly signaling intent to enter the crypto space.

“We’re seeing more open dialogue between policymakers and Web3 leaders that is shaping legislation and giving institutions more confidence to commit to longer digital asset roadmaps,” Tesfaye said. “More specifically, the GENIUS Act is one of the strongest signals that Congress is ready to support responsible blockchain innovation.”

Following some political holdouts during the Republicans’ “crypto week,” the US House of Representatives passed the GENIUS Act, along with two other crypto-related bills, last Thursday. 

The legislation, which establishes a regulatory framework for the $260 billion stablecoin market, was signed into law by US President Donald Trump on Friday.

While stablecoins are often excluded from RWA industry metrics, many are backed by government bonds and other tangible assets, effectively classifying them as RWAs. 

Stablecoins are also widely regarded as a key on-ramp for tokenization’s future growth, offering predictability, lower transaction costs, greater liquidity and a bridge between traditional finance and decentralized finance (DeFi).

According to Tesfaye, a favorable regulatory environment in the US will be a major catalyst for the continued evolution and adoption of tokenized assets.

Related: GENIUS Act blocks Big Tech, banks from dominating stablecoins: Circle exec

RWA growth beyond private credit, US Treasury debt

To date, much of the growth in tokenized assets has been concentrated in private credit and US Treasury debt.

According to a recent report co-authored by RedStone, Gauntlet and RWA.xyz, 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%.

“The initial adoption of tokenization has been centered on bringing legacy financial assets onto modern digital rails, and treasuries and private credit are perfect starting points. Onchain, they settle faster, trade easier, and can easily be fractionalized,” said Tesfaye, adding:

“Looking ahead, it’s not hard to imagine a future where RWAs expand into more complex asset classes like derivatives, IP or esoteric asset classes. As the financial infrastructure matures, it won’t just be about access or efficiency. It will be centered on unlocking entirely new financial products and global participation.”

Aptos is emerging as hub for RWA activity. As Cointelegraph recently reported, the value of tokenized RWAs on the Aptos blockchain eclipsed $540 million in late June, led by issuers such as Berkeley Square of the PACT Consortium and BlackRock’s BUIDL, which expanded to Aptos less than a year ago. 

Related: Experts say ‘just a starting point’ as Crypto Week ends on a high note