Blockchain infrastructure firm Global Settlement Network (GSN) has launched a pilot project to tokenize water treatment facilities in Jakarta, Indonesia, marking a notable step in the use of blockchain technology to finance critical public infrastructure.
According to industry reports, the pilot focuses on government-contracted water treatment sites in Jakarta and is designed to demonstrate how real-world asset (RWA) tokenization can unlock capital for infrastructure upgrades.
The initiative aims to modernize aging water systems while improving transparency and efficiency in funding and settlement processes.
Tokenization Strategy and Funding Goals
As part of the pilot, GSN plans to tokenize revenue-generating water treatment assets, allowing them to be represented on-chain and accessed by investors through compliant digital instruments.
The initial phase is expected to mobilize around $35 million in funding to support operational improvements, maintenance, and network expansion across the selected facilities.
GSN said the Jakarta rollout is intended as a proof of concept before expanding the model across Southeast Asia over the next 12 months.
If successful, the company aims to scale the framework to as much as $200 million in tokenized water infrastructure assets, potentially covering multiple jurisdictions in the region.
Blockchain-Based Settlement Mechanisms
The project will also test blockchain-based settlement mechanisms, including the use of a rupiah-denominated stablecoin for payments and revenue distribution.
Supporters say this could reduce settlement friction, improve auditability, and enable faster cross-border capital flows for infrastructure financing.
Addressing Southeast Asia's Water Infrastructure Challenges
Water infrastructure remains a major challenge across Southeast Asia, where rapid urbanization and population growth have placed strain on existing treatment and distribution systems.
By combining tokenization with regulated payment rails, GSN argues that public-private partnerships could gain access to new pools of capital without relying solely on traditional financing channels.
Broader Implications for Blockchain Adoption
The Jakarta pilot comes amid growing global interest in real-world asset tokenization, as governments and enterprises explore blockchain solutions beyond cryptocurrencies.
Analysts say infrastructure-focused use cases, particularly in utilities and energy, could play a key role in driving broader institutional adoption of blockchain technology.
If the pilot meets regulatory and operational benchmarks, GSN’s model could serve as a blueprint for funding essential infrastructure projects across emerging markets using tokenized assets.