U.S. Enacts GENIUS Act to Spur RWA Tokenization, Institutional Adoption Rises on Regulatory Clarity

Real-world asset (RWA) tokenization is gaining momentum as a transformative force in financial markets, with the recent enactment of the U.S. GENIUS Act signaling a pivotal shift in regulatory clarity and institutional adoption. Solomon Tesfaye, newly appointed chief business officer at Aptos Labs, highlighted the legislation as a catalyst for the sector’s growth, emphasizing its role in fostering collaboration between policymakers and blockchain innovators. “The GENIUS Act is one of the strongest signals that Congress is ready to support responsible blockchain innovation,” Tesfaye stated, underscoring the legislation’s potential to attract institutional investment and accelerate the digitization of traditional assets.

The GENIUS Act, formally titled the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” was passed by the U.S. House of Representatives last Thursday and signed into law by President Donald Trump. The bill establishes a regulatory framework for the $260 billion stablecoin market, which, despite often being excluded from RWA metrics, is integral to the tokenization ecosystem due to its reliance on government bonds and tangible assets. Stablecoins are widely viewed as a bridge between traditional finance and decentralized systems, offering lower transaction costs, enhanced liquidity, and a predictable on-ramp for broader tokenization adoption.

Tesfaye noted that the act’s passage reflects a maturing dialogue between regulators and Web3 stakeholders, reducing uncertainties that have historically hindered institutional participation. “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,” he said. This shift aligns with broader trends in tokenized asset categories such as private credit and U.S. Treasury debt, which have driven the sector’s growth. As of June, private credit accounted for nearly 60% of the RWA market, with tokenized Treasurys comprising the second-largest segment at approximately 28%, according to a report by RedStone, Gauntlet, and RWA.xyz.

The Aptos blockchain has emerged as a key platform for RWA activity, with tokenized assets exceeding $540 million in value by late June. Projects like Berkeley Square’s PACT Consortium and BlackRock’s BUIDL, which expanded to Aptos within a year, have demonstrated the chain’s capacity to support scalable infrastructure for tokenized assets. Tesfaye highlighted the efficiency gains enabled by on-chain settlement, fractionalization, and liquidity, which are reshaping traditional financial instruments. “The initial adoption of tokenization has been centered on bringing legacy financial assets onto modern digital rails,” he said, adding that the next phase could involve more complex asset classes such as derivatives and intellectual property.

Analysts suggest that the regulatory clarity provided by the GENIUS Act could unlock new financial products and global participation in tokenized markets. However, challenges remain, including the need for standardized frameworks to govern cross-border transactions and ensure interoperability between blockchain and traditional systems. For now, the focus remains on leveraging stablecoins and core RWA categories to build a foundation for broader innovation. As Tesfaye noted, the act’s passage marks not just a legislative milestone but a strategic turning point in the evolution of digital finance. “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,” he concluded.