Lede
Global Settlement Network has announced a pilot program dedicated to the tokenization of water treatment facilities located in Jakarta. This initial phase of the project specifically targets eight government-contracted water treatment sites within the city. The primary objective of this initiative is to leverage blockchain technology to raise up to $35 million, which will be directed toward upgrading existing facilities and expanding the local water network. This move represents a significant application of real-world asset tokenization, a process that involves minting tangible assets on a blockchain to improve investor accessibility and provide new trading opportunities.
By transforming these physical infrastructure sites into digital tokens, the project aims to bridge traditional finance and decentralized technology. The initial focus on eight specific sites in Jakarta serves as a proof of concept for the viability of using blockchain to fund critical public utilities. The capital raised is intended to modernize the infrastructure, ensuring that the water network can meet the growing demands of the urban population in Indonesia’s capital. This pilot marks a transition toward more transparent and accessible investment models for large-scale infrastructure projects in the region.
Context
The pilot is launched within a region characterized by rapid digital asset adoption. Southeast Asia has established itself as a major hub for cryptocurrency activity, with the broader Asia-Pacific (APAC) region identified as the fastest-growing area for on-chain crypto transactions. Data indicates that the APAC region experienced a 69% year-over-year increase in value received. Within this landscape, Indonesia has emerged as a key player. Chainalysis identified the country as the second-largest market for on-chain value during the 12-month period leading up to June 2025, recording a substantial 103% increase in on-chain value.
This growth in adoption coincides with a global trend toward tokenizing real-world assets (RWA). As of recent reports, it is estimated that over $21 billion in RWA is currently on-chain, distributed among more than 629,528 holders. Indonesia possesses a wealth of major infrastructure developments and natural assets that are considered suitable for tokenization. The integration of blockchain into the management of these assets is seen as a way to tap into new sources of capital. The regional enthusiasm for on-chain activity provides a supportive environment for initiatives that aim to digitize tangible infrastructure, such as the water treatment sites in Jakarta.
Impact
The implementation of this pilot is expected to introduce new financial mechanisms to the local economy. Specifically, the involved firms plan to test settlement rails utilizing rupiah-denominated stablecoins within controlled corridors. This testing phase is part of a broader strategy to refine how digital assets are used for regional financial transactions. Following the initial success in Jakarta, the project is designed to scale across the rest of Southeast Asia over the following 12 months. The ultimate goal is to reach $200 million in tokenized assets, expanding beyond the initial water treatment sites in Indonesia.
This initiative addresses a critical funding requirement in the region. Reports suggest that Southeast Asia faces a significant water infrastructure financing gap, with more than $4 trillion in long-term water investment required by the year 2040. Current spending levels have been unable to keep pace with these requirements. By utilizing tokenization, the project seeks to provide a scalable model for attracting the necessary capital to close this gap. The successful deployment of rupiah-stablecoin settlement rails could also pave the way for more efficient cross-border financial activity and foreign exchange corridors, streamlining how infrastructure projects are funded and managed across different jurisdictions.
Outlook
Looking ahead, the pilot is intended to serve as a blueprint for further expansion throughout the APAC region. The plan involves a phased rollout that will see the project move from the initial eight sites in Jakarta to a broader portfolio of assets across Southeast Asia within a 12-month timeframe. During this period, the scope of the settlement rails is expected to expand, moving from controlled corridors to additional foreign exchange corridors. This trajectory aligns with the goal of managing $200 million in tokenized assets, reflecting a significant increase from the initial $35 million fundraising target.
The long-term outlook for the project is tied to the massive demand for water-related infrastructure investment. With a required investment of more than $4 trillion by 2040, the use of blockchain for asset tokenization is positioned as a potential solution for sustainable development in Southeast Asia. As the market for real-world assets continues to mature globally, the success of this pilot could influence how other natural assets and infrastructure developments are financed in emerging economies. The focus on establishing robust settlement rails and increasing the volume of on-chain assets suggests a move toward a more integrated digital financial ecosystem for regional infrastructure projects.
About the Author
