Water is getting tokenized with DMCC and AQUA Index
UAE based DMCC has signed a Memorandum of Understanding with AQUA-INDEX, a global water commodities trading, to launch a digital asset token backed by freshwater resources.
The Aqua Index water token will be back 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.
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, had noted that while nearly half the global population is experiencing water scarcity in the past year, water remains without a mature regulated market. He adds, ” 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 that turning water to a new asset class for a financial trading is a gamechange.
He explains that it will establish new levels of water management which prevents scarcity, contamination, and lack of access. He stated, “Water as a collateral will have a significant monetary impact enabling countries and municipalities to increase infrastructure capabilities. AQUA-INDEX, with a new initiative of tokenized water resources, presents the validation of the concept. The collaboration of AQUA-INDEX’s patented innovations with the DMCC Water Centre will ensure a leading breakthrough in water ecosystems.”
In May 2026 GoldMan Sachs report noted that tokenization would be entering the water sector and will be on the table soon. Goldman Sachs issued a report that discussed the strategic and financial importance of water and the upcoming tokenization of water as a promising approach to the challenges facing water markets.
As per the report, tokenization can be used both to solve challenging water market issues for example, by injecting liquidity and turning rights into traceable tokens that track water use across market participants and at different jurisdictional layers—and water infrastructure financing challenges.
The report also notes that tokenized financing can deliver credits for companies that conserve or recycle water through connections to flow meters.
At the time the report mentioned that the UAE is testing a water-backed digital token that links verified physical water volumes to a tradable digital asset, with the aim of improving transparency and liquidity and connecting water more directly to capital markets.
