- IPv4 brokers exist because address scarcity has turned IP space into transferable digital capital rather than neutral infrastructure.
- Brokerage does not resolve scarcity; it stabilises circulation inside a constrained system and reshapes incentives across the Internet economy.
IPv4 scarcity and the emergence of brokers
IPv4 addresses now operate within a closed economic system. The global free pool is exhausted, exit from IPv4 remains impractical, and demand persists due to backward compatibility requirements.
IPv4 brokers emerge naturally from this structure. They do not create value in the traditional sense; they intermediate scarcity. By facilitating transfers and leases between address holders and buyers or lessees, brokers make a constrained market function without altering its underlying limits.
Hilco Global, an advisory firm active in IP address transactions, has described IPv4 space as a “hidden asset class” whose value only becomes visible once organisations attempt to reallocate or monetise it. Brokers operate at that moment of recognition, translating technical inventory into financial transactions.
Also Read: What makes an IP address a form of digital capital
What brokers actually do in the digital economy
IPv4 brokers perform three core functions: price discovery, compliance mediation and risk reduction. In a fragmented global system governed by regional Internet registries, address transfers require policy alignment, due diligence and coordination. Brokers reduce friction, but they also formalise IPv4 as a tradable asset class.
As Bill Woodcock, general manager of Packet Clearing House, has consistently noted in discussions on Internet governance, number resources rely on voluntary coordination rather than enforcement. Brokers do not govern IPv4; they operate within that voluntary framework, ensuring circulation continues even as scarcity intensifies.
This has balance-sheet implications. Enterprises holding surplus IPv4 space increasingly treat addresses as intangible assets. Brokers make it possible to convert those assets into capital through sale, or into recurring income through leasing, without direct engagement in the registry process.
Also Read: The long road to IPv4 exhaustion
Case study: Brokerage as stabilisation, not solution
Orion Telekom, a European telecommunications operator, held a legacy IPv4 allocation exceeding its operational needs. Rather than selling the addresses outright, the company engaged a brokerage platform to lease unused space to third parties. The broker handled vetting, routing validation and contractual enforcement, allowing Orion to generate recurring income while retaining ownership.
The broker did not reduce IPv4 scarcity or accelerate transition to IPv6. Instead, it enabled the system to absorb scarcity by converting idle addresses into income-producing capital. The addresses never left the IPv4 economy; they circulated within it.
This illustrates the broker’s real role in the digital economy. IPv4 brokers are not market innovators or neutral facilitators. They are stabilisers of a constrained system, allowing scarcity to persist without immediate failure. In doing so, they reinforce the same dynamics described in BTW’s analysis of IP addresses as digital capital: when exit is limited, intermediation becomes essential, and infrastructure quietly becomes finance.
