Aquindex, a leading firm in water asset management and pricing, has announced plans to launch a dedicated digital water token in the United Arab Emirates. This initiative forms part of its broader strategy for global expansion and the development of a digital infrastructure aimed at documenting, pricing, managing, and trading water reserves through the tokenisation of real assets.
Transforming Water Resources into Digital Assets
According to Ahmed bin Sulayem, the CEO of the Dubai Multi Commodities Centre (DMCC), the collaboration with Aquindex in 2025 is set to pave the way for what is anticipated to be the world’s first digital asset token directly backed by freshwater resources. This move is expected to foster a more transparent global water market and reinforce Dubai’s position as a leading hub for this emerging sector.
Dubai: A Strategic Growth Platform
Bin Sulayem expressed that Dubai serves as a crucial platform for Aquindex’s next phase of international expansion, leveraging the integrated ecosystem of trade, logistics, technology, and finance present within the DMCC. This integration aims to blend physical assets with blockchain-based markets while promoting sustainable management practices.
Launch of Institutional Platform in 2026
Aquindex plans to unveil an institutional platform by the end of 2026, designed to convert certified water reserves into traceable and manageable digital assets. This platform will connect these digital tokens to their physical counterpart through smart contracts and logistical services, enabling token holders to exchange their shares for actual water quantities via approved distribution and storage networks.
Initial Focus on Regulated Groundwater Reserves
The project’s first phase will concentrate on regulated groundwater reserves in the United States, with an estimated 11 billion barrels available for tokenisation, valued around $5 billion. This initiative is supported by an extensive pipeline network exceeding 20 miles and capable of facilitating a potential delivery of up to 300,000 barrels daily.
Building a Comprehensive Water Asset Ecosystem
According to Yakub Shirazi, the Chairman and Founder of Aquindex, the company is working on developing a comprehensive technological ecosystem that links water resources to transparent pricing, ownership verification, and delivery efficiency. He highlighted that the UAE represents a strategic market for expansion, thanks to its advanced digital infrastructure and global stature. Shirazi noted that the project transcends mere digitisation of water assets, aiming to construct a framework that connects digital representation with physical resources from verification to delivery.