H20 Water Securities Launches World’s First Crypto Water Token and Raises $150 Million
- H20N functions as means to raise funds for global water projects.
- H20 Water Network modernises the financing, deployment and operation of water plants through blockchain technology.
- Users can earn H20N token rewards based on their participation.
A new water delivery infrastructure system powered by cryptocurrency has received a $150 million investment from the Bahamas-based firm specialising in alternative investments, GEM Digital.
The system, which essentially offers the world’s first crypto water token, has been developed by South Africa-based Exchange Trust Settlement Services through its newly established H20 Securities division.
More specifically, the H20N token is part of the H20 Water Network, an initiative that combines finance and infrastructure in the deployment and operation of water plants globally.
H20 Water Network
The primary goal of the H20 Water Network is to modernise the financing, deployment and operation of water plants through the use of blockchain technology.
Notably, while H20N functions as means to raise capital for the financing of global water projects, the initiative itself is not focused on the technical, engineering and construction aspects of such projects.
H20N is used to settle bills between network participants including water plant operators and their clients, and can pay for engineering services, maintenance, water treatment, insurance, surveying, data management, equipment and material supplies.
Overall, this type of financing reduces the time it takes for water suppliers to deliver to new clients in comparison to more traditional processes.
In light of water scarcity, the aim is to globally connect more people to drinkable water, faster and more cost effectively. This is why the initiative has incentivised H20 Water Network users through the H20N token by allowing them to earn rewards based on their participation.
Water Infrastructure Worldwide
There are currently two billion people, which represents 30% of the world’s population, living in water scarce conditions and this number is expected to increase to 50% of the population by 2030.
Many do not have access to sufficient water in order to supply their daily needs, with the larger and more broader issue being a lack of funding for water infrastructure. The global funding gap for water infrastructure could exceed $18 trillion by the end of 2030, according to the Organisation for Economic Co-operation and Development (OECD).
This is where H20N comes in. The token aims to increase water availability to the world’s population by bringing accelerated investment into water infrastructure in order to meet global demands. It also unlocks new approaches to water production.
The imitative ultimately seeks to achieve water plant capacity range of less than 100 million litres per day (MLD), with more than 70% of efforts in the sub five million litres per day category. The sale of the water then repays initial project finance costs.