Dubai’s international business district DMCC announced on Tuesday that it is partnering with AQUA-INDEX to launch the world’s first digital asset token backed directly by freshwater resources, revolutionising how water is traded, valued and managed globally.
The token, the first of its kind globally, is backed by verified, drinking-quality water stored in global reservoirs and will enable investors, hedgers, traders and the general public to trade, hold and take delivery of fresh water as a commodity.
“Nearly half the global population experiences water scarcity for at least part of the year, yet water remains the only critical resource without a mature, regulated market,” stated Ahmed Bin Sulayem, executive chairman and CEO, DMCC.
Unlocking new liquidity in global water supply chains
By combining financial innovation with water market expertise, the partnership offers a practical mechanism for unlocking new liquidity and transparency in global water supply chains.
Under the partnership, AQUA-INDEX will benefit from DMCC’s extensive global network, world-class services, advanced infrastructure and leading commodity marketplace, facilitating the effective trading and investment in water assets.
AQUA-INDEX will also enhance the availability and exchange of knowledge around global water usage and pricing and provide access to essential trading and hedging products for DMCC and its member companies. DMCC will not directly own or manage the water-backed token itself.
“This is the next clear milestone in the formation of DMCC Water Centre, where we will not only bring the conversation of water to the forefront, but also attract the sector’s leading companies to create a global center in Dubai for water innovation, security, sustainable best practice, knowledge and education, while ensuring that the world’s most transported commodity has the ability to reach water distressed areas,” added Bin Sulayem.
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DMCC to establish Water Center
The announcement of the world’s first water-backed digital asset token forms part of DMCC’s ongoing efforts to establish the DMCC Water Center, a dedicated ecosystem for the global water industry that positions Dubai as a central, neutral hub for water trading and innovation. The Water Center brings together WaterTech innovators, logistics providers and commodity traders under one platform.
The introduction of a water-backed token forms a key pillar of DMCC’s Water Center strategy, offering new tools for hedging risk, improving allocation and financing critical infrastructure across water-stressed regions.
“Pricing water by the value of its usage, standardization of water by its mineral content and quality, and turning water into a new asset class for financial trading, is a game-changer in the world economy. It will establish new levels of water management which prevents scarcity, contamination and lack of access,” added Yaacov Shirazi, chairman and founder of AQUA INDEX.
Shirazi explained that water, as collateral, will have a significant monetary impact, enabling countries and municipalities to increase infrastructure capabilities.
