DMCC and AQUA-INDEX partner to launch world's first water-backed digital asset

DMCC, an international centre for trade, commerce and innovation, has entered into a strategic Memorandum of Understanding with AQUA-INDEX, a global leader in water commodities trading. This partnership supports AQUA-INDEX’s efforts to introduce the first-ever digital token directly backed by freshwater resources, aiming to transform the way water is valued, traded, and managed on a global scale.

This innovative token, a global first, is supported by verified drinking-quality water stored in international reservoirs. It will provide investors, traders, hedgers, and the public with a new means to trade, hold, or take delivery of freshwater as a commodity. By combining financial innovation with deep expertise in water markets, the initiative aims to enhance liquidity and transparency throughout global water supply chains.

Through the agreement, AQUA-INDEX will leverage DMCC’s global reach, advanced infrastructure, and established commodity marketplace to facilitate the effective trading and investment in water-related assets. The collaboration will also drive the dissemination of knowledge on water usage and pricing while granting DMCC members access to new tools for trading and risk management. DMCC itself will not own or manage the token.

By combining financial innovation with deep expertise in water markets, the initiative aims to enhance liquidity and transparency throughout global water supply chains

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, standardisation 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. 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.”

This announcement aligns with DMCC’s broader strategy to establish the DMCC Water Centre — a dedicated hub for the global water industry that positions Dubai at the heart of water trading and innovation. The Water Centre aims to unite stakeholders across WaterTech, logistics, and commodity trading, with the introduction of the water-backed token serving as a cornerstone of this ecosystem. The initiative is set to provide new mechanisms for managing risk, improving resource allocation, and financing infrastructure in regions facing water scarcity.