SINGAPORE, June 20, 2025 (GLOBE NEWSWIRE) — Davis Commodities Restricted (Nasdaq: DTCK), a Singapore-based chief in agricultural commodities buying and selling, has unveiled a strategic plan to combine blockchain know-how and digital belongings into its enterprise operations. The corporate has introduced the upcoming launch of a digital asset treasury administration technique alongside a real-world asset (RWA) tokenization platform, highlighting its intent to revolutionize commodity finance and unlock vital progress alternatives within the international digital financial system.
The corporate has outlined a $30 million fundraising plan and, upon profitable completion, intends to deploy a dual-pronged technique designed to drive innovation and income progress. The initiative aligns with Davis Commodities’ imaginative and prescient to reshape conventional commodity buying and selling by leveraging the transparency, effectivity, and safety of blockchain know-how. The next offers extra detailed details about the plan.
Blockchain-Powered Agricultural Tokenization Platform
As much as 50% of the funds will likely be invested within the improvement of a blockchain-powered platform designed to tokenize agricultural commodities. The platform will initially give attention to remodeling key bodily commodities, corresponding to sugar, rice, and edible oils, into tokenized, tradeable digital belongings.
Key Options of the Tokenization Platform:
- Sensible Contract-Based mostly Settlement: Automated transactions through good contracts scale back reliance on intermediaries, rushing up settlement occasions and decreasing prices.
- On-Chain Provide Chain Monitoring: Blockchain’s immutable ledger ensures end-to-end transparency of the commodities’ provide chain, enhancing counterparty confidence.
- Cross-Border Effectivity: The platform facilitates near-instant cross-border settlements, addressing time and value inefficiencies in conventional commerce finance.
- Tokenized Collateralization: Institutional lenders can collateralize tokenized commodities, unlocking liquidity for members throughout the ecosystem.
In line with a report from Boston Consulting Group (BCG), the worldwide RWA tokenization market is projected to exceed $16 trillion by 2030. Davis Commodities’ early entry into this area positions it as a pioneer succesful of capitalizing on the quickly rising demand for tokenized real-world belongings.
Advantages of the Platform:
- Fractional Possession: Tokenization allows buyers to personal fractions of high-value agricultural commodities, democratizing entry to the asset class.
- Programmable Yield Constructions: Blockchain know-how permits for the creation of programmable yield devices, attracting institutional curiosity from crypto funds, different asset managers, and liquidity suppliers.
- Price Discount: By lowering transaction charges and handbook processes, the platform will increase effectivity for all stakeholders.
Davis Commodities anticipates that the platform will drive vital institutional adoption, because it provides a blockchain-native resolution for real-world yield devices, enabling international liquidity suppliers to take part in agricultural finance.
Digital Treasury Allocation into Bitcoin Reserves
As half of its digital asset treasury technique, Davis Commodities will allocate as much as 40% of its funds to Bitcoin reserves, integrating the main cryptocurrency into its stability sheet as a strategic treasury asset.
Key Mechanisms of the Bitcoin Treasury Technique
- Diversification of Asset Base:
By incorporating Bitcoin, sometimes called “digital gold,” Davis Commodities enhances its asset portfolio with a retailer of worth that’s impartial of conventional market dynamics. - Market-Pushed Returns:
The corporate anticipates that Bitcoin reserves might generate measurable returns over the subsequent 36 months, contingent on market situations and additional adoption of digital belongings globally. - Liquidity Optimization:
Bitcoin’s international liquidity and 24/7 buying and selling accessibility add flexibility to the corporate’s treasury administration, supporting operational resiliency and strategic progress initiatives. The corporate has the chance to make the most of numerous monetary instruments, corresponding to spot buying and selling, futures, or ETFs, relying on market situations. This flexibility permits for strategic changes to seize returns whereas managing threat. - Threat Mitigation Mechanisms:
To keep away from extreme damaging impacts from sudden Bitcoin worth drops, acceptable mechanisms will likely be carried out. These could embrace hedging methods and diversification to reduce draw back dangers. - Transaction and Liquidity Help:
If vital, Bitcoin reserves can be utilized for transactions or liquidated to assist different funding alternatives, making certain operational agility and entry to capital when wanted. Holding Bitcoin as half of the corporate’s reserves strengthens confidence within the Tokenization Platform, showcasing Davis Commodities’ dedication to blockchain and digital belongings as half of its long-term technique.
By means of this treasury allocation, Davis Commodities goals to place itself as a forward-thinking enterprise succesful of navigating the evolving monetary panorama whereas sustaining monetary stability.
Further Investments in Expertise and Safety
The remaining 10% of the funds will likely be allotted to:
- Blockchain Infrastructure: Constructing and sustaining the platform’s technological basis to make sure scalability and operational effectivity.
- Cybersecurity: Implementing superior safety measures to guard digital belongings, good contracts, and consumer information.
- Regulatory Compliance: Guaranteeing full alignment with worldwide regulatory frameworks governing digital belongings and tokenized platforms.
These investments will safeguard the platform’s long-term viability and make sure the seamless integration of blockchain know-how into Davis Commodities’ core operations. Based mostly on the above framework, the corporate will take additional steps in execution and make changes in response to evolving financial and technological modifications to attain its progress goals.
Davis Commodities tasks that its mixed digital treasury technique and RWA tokenization platform will unlock substantial income progress inside 24 months of launch. The corporate’s give attention to tokenized asset liquidity, price efficiencies, and expanded capital market entry underscores its dedication to redefining commodity finance for the digital age.
About Davis Commodities Restricted
Based mostly in Singapore, Davis Commodities Restricted is an agricultural commodity buying and selling firm that focuses on buying and selling sugar, rice, and oil and fats merchandise in numerous markets, together with Asia, Africa and the Center East. The Firm sources, markets, and distributes commodities beneath two predominant manufacturers: Maxwill and Taffy in Singapore. The Firm additionally offers prospects of its commodity choices with complementary and ancillary companies, corresponding to warehouse dealing with and storage and logistics companies. The Firm makes use of a longtime international community of third-party commodity suppliers and logistics service suppliers to distribute sugar, rice, and oil and fats merchandise to prospects in over 20 international locations, as of the fiscal 12 months ended December 31, 2024.
For extra data, please go to the Firm’s web site: ir.daviscl.com.
Ahead-Wanting Statements
This press launch accommodates sure forward-looking statements, throughout the that means of the “protected harbor” provisions of america Personal Securities Litigation Reform Act of 1995, regarding the fundraising plans of Davis Commodities Restricted. These forward-looking statements usually might be recognized by phrases corresponding to “imagine,” “undertaking,” “predict,” “finances,” “forecast,” “proceed,” “anticipate,” “anticipate,” “estimate,” “intend,” “technique,” “future,” “alternative,” “plan,” “could,” “might,” “ought to,” “will,” “would,” and comparable expressions or damaging variations of these expressions.
Ahead-looking statements are predictions, projections, and different statements about future occasions which might be primarily based on present expectations and assumptions and, subsequently, topic to dangers and uncertainties. Many elements might trigger precise future occasions to vary materially from the forward-looking statements contained on this press launch. The Firm’s filings with the SEC establish and focus on different vital dangers and uncertainties that would trigger occasions and outcomes to vary materially from these indicated in these forward-looking statements.
Ahead-looking statements communicate solely as of the date on which they’re made. Readers are cautioned to not place undue reliance upon forward-looking statements. Davis Commodities Restricted assumes no obligation, and expressly disclaims any intention or obligation, to replace or revise any forward-looking statements, whether or not in consequence of new data, future occasions, or in any other case.
