The funding gap for water infrastructure in Southeast Asia is increasingly concerning. With investment needs reaching US$4 trillion by 2040, there is a need for new financing innovations.
Utilizing blockchain technology, GSX and GIF officially collaborate to test the tokenization of real-world assets (RWA) in this sector. The inaugural project starts in Indonesia with a value of US$30 million, as a stepping stone towards a target of US$200 million across Southeast Asia. This scheme uniquely combines public physical assets with crypto-based settlement speed while adhering to regulatory compliance.
Jakarta Water Infrastructure Pilot Becomes New Foundation for Public Financing
This initiative began with a focus on water treatment facilities in Jakarta operating under government contracts. Because it generates stable and long-term cash flows, this asset is considered very ideal as a tokenization base for institutional investors.
Currently, there are eight facilities in the pilot project serving over 36,000 residents with a clean water supply of 2,300 liters per second. According to predictions, this project is expected to generate revenues of over US$15 million by the end of 2026. Through the tokenization scheme, GSX and Globalasia are targeting an additional US$35 million in funding to expand capacity and the water distribution network.
This structure allows investors to obtain returns from public infrastructure with a level of transparency equivalent to traditional capital markets.
Witjaksono, representing Globalasia, expressed his enthusiasm for this collaboration:
"We are very pleased to partner with GSX to develop asset tokenization on real projects in Indonesia. This process offers significant growth opportunities, considering Indonesia has many major infrastructure developments and natural assets available for tokenization. This collaboration provides a practical way for issuers and institutions to finance infrastructure and other ESG-related assets while working alongside regulators."
Also Read: Understanding Real World Asset (RWA): Tokenization of Real World Assets
Financial Innovation: Rupiah Stablecoin & Instant Settlement (T+0)
To support efficiency, this collaboration introduces a settlement system using Rupiah-based stablecoins. Its main advantages are:
Instant Finality (T+0): Reducing cross-border clearing time from days to almost instantaneous.
Global Standards: Integrating international compliance such as FATF recommendations, KYC/AML procedures, and ISO 20022 financial messaging standards.
Guaranteed Security: Assets can move securely between permissioned financial systems and public networks.
Roadmap and Future Projections
In the next 12 months, both parties will conduct a pilot issuance of tokens and stablecoin settlement in a limited corridor. This plan will later expand to other foreign exchange routes involving more institutional partners under the strict supervision of a joint committee.
Also Read: Wow! China Officially Bans RWA for the First Time, Young Investors Rebel
This step marks a significant shift in crypto infrastructure: from mere experimentation to real-world application in the public sector. If successful, this model has the potential to become a new standard in financing infrastructure and ESG (Environmental, Social, and Governance)-based assets across Southeast Asia.
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