U.S. GENIUS Act Spurs RWA Tokenization Surge as $260B Stablecoin Market Gains Regulatory Clarity

Real-world asset (RWA) tokenization is set to experience a significant surge following the enactment of the U.S. GENIUS Act, according to Solomon Tesfaye, chief business officer at Aptos Labs. The legislation, which was signed into law by President Donald Trump on July 19, establishes a regulatory framework for the $260 billion stablecoin market and is seen as a pivotal step in fostering institutional confidence in blockchain innovation. Tesfaye emphasized that the act reflects growing collaboration between policymakers and Web3 leaders, signaling a shift toward structured, long-term digital asset strategies.

Stablecoins, often excluded from RWA metrics, play a foundational role in the sector due to their backing by government bonds and other tangible assets. Their utility as a bridge between traditional finance and decentralized finance (DeFi) is further amplified by features such as lower transaction costs and enhanced liquidity. Tesfaye noted that stablecoins are increasingly serving as a gateway for broader tokenization adoption, enabling seamless integration of digital and traditional financial systems.

The GENIUS Act’s passage follows months of bipartisan negotiations and was part of a trio of crypto-related bills approved by the U.S. House of Representatives. While the legislation primarily focuses on stablecoins, its implications extend to RWA tokenization by creating a clearer regulatory environment. This has already spurred activity in asset classes like private credit and U.S. Treasury debt, which together account for nearly 88% of the current RWA market. RedStone, Gauntlet, and RWA.xyz reported that private credit represented 60% of the sector as of June, with tokenized Treasurys comprising 28%.

Tesfaye highlighted that the initial phase of tokenization has centered on digitizing legacy financial assets, with treasuries and private credit offering immediate benefits through faster settlement times and fractional ownership. Looking ahead, he anticipates expansion into more complex asset classes, such as derivatives, intellectual property, and niche investments. “As infrastructure matures, the focus will shift from efficiency to unlocking entirely new financial products and global participation,” he stated. This vision aligns with Aptos’ growing role in the RWA space, where tokenized assets on its blockchain surpassed $540 million in value by late June.

The regulatory clarity provided by the GENIUS Act is expected to attract further institutional participation, particularly as barriers to entry for traditional financial players are reduced. However, challenges remain, including the need for standardized frameworks across asset classes and addressing potential risks such as market fragmentation. Analysts suggest that while the act marks a critical milestone, sustained growth will depend on continuous dialogue between regulators and industry stakeholders to refine policies and ensure responsible innovation.