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DMCC signed a memorandum of understanding with AquaIndex in June 2025 to support the launch of the world’s first digital asset token backed directly by verified freshwater resources. The token enables investors hedgers traders and the public to trade hold and take physical delivery of drinking-quality water stored in global reservoirs according to the joint statement. AquaIndex will utilise DMCC’s network infrastructure and commodity marketplace to facilitate the initiative while the free zone will not directly own or manage the token. The partnership aims to establish Dubai as a hub for water trading and innovation through the planned DMCC Water Centre.
AquaIndex founder and chairman Yaacov Shirazi said pricing water by the value of its usage standardisation of water by its mineral content and quality and turning water to a new asset class for financial trading is a gamechanger in the world economy. He added that it will establish new levels of water management which prevents scarcity contamination and lack of access while water as collateral will have a significant monetary impact enabling countries and municipalities to increase infrastructure capabilities. The company estimates the global water market at one trillion dollars and holds more than 700 approved patent claims related to water pricing algorithms and blockchain systems. Initial tokens will be backed by water from a regulated aquifer in Texas with options for physical redemption at distribution points.
World Bank data places renewable freshwater resources in the Gulf region at less than 100 cubic metres per person annually against daily consumption rates near 550 litres per capita. The UAE draws between 42 and 80 percent of its water from desalination plants according to assessments from the World Bank and regional authorities while other GCC states rely on the process for up to 99 percent of municipal supply in some cases. AquaIndex’s tokenisation approach seeks to introduce liquidity and transparency into water supply chains amid these constraints. The project will include knowledge exchange on global water usage and pricing for DMCC member companies.
McKinsey estimates place the tokenized real world asset market at around two trillion dollars by 2030 in its base case excluding stablecoins and central bank digital currencies. AquaIndex described the water token as part of a broader ecosystem that includes collateral facilities and secondary market trading for verified water assets. The company is engaging stakeholders across North America Latin America South Asia and the MENA region to build partnerships with governments utilities and nongovernmental organisations. Plans also encompass initiatives in education water purification and equitable access.
The memorandum aligns with DMCC’s objective to develop a full water trading ecosystem that includes digital exchanges custodians brokers and licensed platforms. AquaIndex will provide trading and hedging products while advancing its index prices that appear on Bloomberg for agricultural commodity water. Further elements such as specific listing venues and regulatory approvals will be detailed in upcoming announcements from the partners. The launch follows successful conceptual work on tokenising both virtual water embedded in commodities and physical reserves.
