Dubai Multi Commodities Centre (DMCC) has partnered with AQUA-INDEX, a tech company specializing in water assetization, to introduce the world's first digital asset token backed by freshwater resources in Dubai. This initiative will utilize blockchain technology to support the token with verified potable water stored in global reservoirs.
Once launched, institutions, hedge funds, traders, and individual investors will be able to trade, hold, and deliver freshwater as a commodity in the Dubai market. This move marks an innovative step in integrating financial technology with water resource management, aiming to enhance liquidity, transparency, and allocation efficiency of global water resources.
Under the agreement, AQUA-INDEX will leverage DMCC's global business network, infrastructure, and trading platform to conduct freshwater asset-related transactions and investments. DMCC will provide trading and hedging tools but will not directly manage or hold the token.
Yaacov Shirazi, Chairman of AQUA-INDEX, emphasized that by grading, pricing, and introducing water resources into the financial trading system, the initiative could transform global water management practices, alleviating issues like freshwater scarcity and pollution.
DMCC, established in 2002 by the Dubai government, aims to make Dubai a hub for commodity trade and enterprise development in the Middle East and globally. This collaboration is part of DMCC's strategic plan to create a "Water Centre," positioning Dubai as an international platform for water resource innovation, commodity trading, and policy coordination.
