UAE – Mubahser: Dubai Multi Commodities Centre (DMCC) and AQUA-INDEX penned a memorandum of understanding (MoU) to support the first water-backed digital asset token, the first of its kind globally.
The collaboration will position DMCC and Dubai as global leaders in sustainable water resource management and transparent water trading infrastructure, according to a press release.
It aligns with AQUA-INDEX’s objectives to launch the world’s first digital asset token backed directly by freshwater resources, revolutionising the global trade, valuation, and management of water.
Backed by verified, drinking-quality water stored in global reservoirs, the token will enable investors, hedgers, and the general public to trade, hold and take delivery of fresh water as a commodity.
The partnership will unlock new liquidity and transparency in global water supply chains.
Meanwhile, AQUA-INDEX will leverage DMCC’s global network and advanced infrastructure to facilitate the effective trading and investment in water assets.
It will also enhance the availability and exchange of knowledge regarding global water usage and pricing, thereby securing access to essential trading and hedging products for DMCC and its member companies. On the other hand, DMCC will not directly own or manage the token itself.
Ahmed bin Sulayem, Executive Chairman and CEO of DMCC, commented: “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.”
He noted: “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.”
Yaacov Shirazi, Chairman and Founder of AQUA INDEX, said: “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 game changer in the world economy.”
“It will establish new levels of water management which prevents scarcity, contamination, and lack of access. Water as a collateral will have a significant monetary impact enabling countries and municipalities to increase infrastructure capabilities,” Shirazi highlighted.
The announcement comes within the framework of DMCC’s efforts to establish the DMCC Water Centre, a dedicated ecosystem for the global water industry that positions Dubai as a central, neutral hub for water trading and innovation. It also follows Bitcoin.com's recent launch, anchoring DMCC’s position as a global hub for Web3 and blockchain innovation.
