Global Settlement Network (GSX), a blockchain infrastructure firm, is setting its sights on addressing water scarcity in Asia through tokenization. The company aims to tokenize $200 million worth of water assets across Southeast Asia within the next 12 months.

GSX has partnered with Globalasia Infrastructure Fund in Indonesia to launch a pilot project in Jakarta. This initiative involves tokenizing the assets of eight government-contracted water treatment plants, with the goal of raising up to $35 million. The funds will be used to upgrade the facilities, expand the water distribution network, and make other necessary improvements.

These water treatment plants currently serve over 36,000 residents and deliver approximately 2,300 liters of clean water per second. Projections estimate that these facilities will generate over $15 million in revenue by the end of 2026.

Tokenization, in this context, refers to the process of representing ownership of an asset – in this case, water treatment plants – with digital tokens on a blockchain. These tokens can then be offered to investors, allowing the company to raise capital more efficiently. Blockchain technology provides transparency and security, as all transactions are recorded on a distributed ledger.

Several other projects are leveraging blockchain to improve global water security. These include initiatives focused on providing clean water access in water-insecure communities, creating water commodity tokens, and developing decentralized ecosystems for equitable water access.

GSX's initiative is part of a growing trend of using blockchain technology to address critical global challenges, such as water scarcity. By tokenizing water assets, the company hopes to unlock new sources of funding and improve the efficiency of water infrastructure projects in Asia.