• DMCC will accomplice with Aqua-Index to launch the primary digital token backed by freshwater assets.
• Tokens enable us to offer clear trades and verified ingesting high quality water worldwide.
• The partnership goals to create a regulated water market that addresses the challenges of rarity and provide.

Dubai’s DMCC, a number one worldwide enterprise district centered on international commerce, has formally made its partnership with Aqua-Index, which makes a speciality of water commodity buying and selling. The partnership goals to introduce the world’s first digital asset token immediately backed by verified freshwater assets.

The initiative goals to handle the problems of shortage and transparency within the international provide chain and create new, tradeable product courses for water. The undertaking will tokenize ingesting high quality water saved in reservoirs to make sure that it’s traded, held and delivered as a standardized asset in a marketplace for the primary time in monetary historical past.

Essential pure assets tokens

The core of the undertaking is the creation of digital tokens that symbolize a selected quantity and high quality of freshwater. This tokenization is designed to carry unprecedented liquidity and transparency to the water market. It’s traditionally fragmented and unregulated regardless of being an necessary useful resource.

By creating standardized monetary devices for water, the partnership goals to determine clear pricing mechanisms primarily based on utilization values ​​and mineral content material, facilitating provide administration, hedging on worth volatility, and direct assets to areas going through water stress.

Strategic partnerships on international commerce

Beneath the phrases of the contract, Aqua-Index, a water commodity buying and selling knowledgeable, will leverage DMCC’s intensive international community, superior infrastructure and established commodity buying and selling markets. Aqua-Index offers water pricing and use experience and offers a variety of transaction and hedging merchandise to DMCC member firms.

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DMCC promotes this ecosystem, however doesn’t retain or management possession of the digital token itself, guaranteeing a transparent separation of roles between market suppliers and asset managers. This alliance is a key element of DMCC’s broader technique and can develop the DMCC Water Centre. DMCC Water Centre is a devoted ecosystem for the worldwide fisheries that brings collectively innovators, logistics suppliers and commodity merchants.

From management

DMCC Government Chairman and CEO Ahmed Bin Sulayem highlighted the important thing wants of this innovation. “Regardless that virtually half of the world’s inhabitants experiences extreme water shortages for no less than a month a 12 months, water as a commodity stays untraded and unregulated in mature markets,” he mentioned. “This partnership with Aqua-Index is a key step in creating a transparent, tradeable and legally constant marketplace for water.”

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Yaacov Shirazi, chairman and founding father of Aqua-Index, defined his transformational monetary strategy. “By pricing water primarily based on worth of use and standardizing it by high quality, we successfully convert it right into a monetary asset,” he identified. “This isn’t nearly buying and selling, it is about basically bettering water administration all over the world by tackling key problems with rarity, air pollution and accessibility.”