UAE based DMCC, the Dubai commodities free zone, signed an MOU with AQUA-INDEX, a global pioneer in water commodities trading to launch the world’s first digital asset token backed by freshwater resources.
As per the press release, this will revolutionize 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. 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 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 token itself.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said, “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. We are proud to partner with AQUA-INDEX to drive a transparent, neutral, and legally coherent structure and marketplace for water to secure the future of a resource that has long been undervalued.
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 centre 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.”
Yaacov Shirazi, Chairman and Founder of AQUA INDEX, added, “Pricing water by the value of its usage, standardization of water by its mineral content and quality, and turning water to a new asset class for a financial trading, is a gamechanger in the world economy. It will establish new levels of water management which prevents scarcity, contamination, and lack of access.”
The Water Centre brings together WaterTech innovators, logistics providers and commodity traders under one platform.
