Davis Commodities Assesses Stablecoin Settlement and CFD Platform to Advance Digitized Agri-Trade Across Emerging Markets
SINGAPORE, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Davis Commodities Limited (NASDAQ:DTCK), a Nasdaq-listed agricultural trading firm headquartered in Singapore, announced that it is reviewing the potential development of a stablecoin-enabled settlement infrastructure and a multi-region CFD (Contract for Difference) trading framework as part of its digital capital market strategy.
These early-stage initiatives reflect Davis Commodities' intent to explore more efficient, transparent, and ESG-aligned commodity finance models—particularly across high-growth, underbanked markets in Africa, Latin America, and Southeast Asia.
Targeting Cross-Border Friction in Trade Settlement
Legacy cross-border payment systems—especially in SWIFT-dependent jurisdictions—frequently incur week-long delays, high FX spreads, and limited accessibility. Davis Commodities is conducting feasibility modeling on a stablecoin-pegged infrastructure, potentially backed by ESG-certified agricultural reserves such as ISCC rice and Bonsucro sugar.
According to initial simulations, the potential benefits include:
- Up to 90% reduction in average settlement time
- 40–60% estimated transaction cost savings
- Faster liquidity velocity across 30+ trading markets
If adopted, the stablecoin rails could support USD 200–250 million in annual settlement volume by 2027—more than doubling the current throughput across traditional banking corridors.
Expanding Revenue Scope via Modular CFD Layer
Davis Commodities is concurrently evaluating a non-deliverable CFD platform that may serve institutional buyers, suppliers, and regional hedgers seeking commodity exposure without physical delivery.
Early projections indicate:
- Potential 5x increase in notional trade exposure over 24 months
- USD 40–60 million in incremental hedging volume
- New digital revenue lines from spread commissions and liquidity provision
The CFD infrastructure is intended to integrate real-time price discovery, ESG risk metrics, and regionalized settlement logic, allowing Davis Commodities to serve as both originator and infrastructure provider.
Algorithmic Optimization Meets ESG Tokenization
As part of its programmable finance roadmap, Davis Commodities is also exploring:
- Traceable stablecoin rails embedded with logistics and compliance data
- A Fractal Bitcoin Reserve (FBR) model to strengthen treasury agility
- Pilot-scale participation in USD 80–100 million tokenized deployments, in alignment with the recently enacted U.S. GENIUS Act, which regulates fiat-backed stablecoins under federal licensing
Internal models estimate that successful adoption of this hybrid architecture could raise Return on Equity (ROE) from current baseline levels, contingent on regulatory and market alignment.
Executive Commentary
"Modern commodity trade is no longer just about goods—it's about programmable capital, traceable flows, and regulatory adaptability," said Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities. "We are studying how digital settlement, algorithmic hedging, and ESG-linked assets can converge to form a more inclusive and efficient trading network."
Outlook and Ecosystem Partnerships
While no formal launch or deployment has occurred, Davis Commodities is working with:
- Digital infrastructure developers
- Cross-border legal advisors
- Custodians, stablecoin protocol enablers, and exchange partners
Technical pilots for both stablecoin settlement and the modular CFD system are expected to be scoped within the next two quarters, with a focus on algorithm-driven optimization and regulatory alignment.
About Davis Commodities Limited
Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries, as of the fiscal year ended December 31, 2024.
For more information, please visit the Company's website: ir.daviscl.com.
Forward-Looking Statements
This press release contains certain forward-looking statements, within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, relating to the fundraising plans of Davis Commodities Limited. These forward-looking statements generally can be identified by terms such as "believe," "project," "predict," "budget," "forecast," "continue," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "could," "should," "will," "would," and similar expressions or negative versions of those expressions.
Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, therefore, subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements contained in this press release. The Company's filings with the SEC identify and discuss other important risks and uncertainties that could cause events and results to differ materially from those indicated in these forward-looking statements.
Forward-looking statements speak only as of the date on which they are made. Readers are cautioned not to place undue reliance upon forward-looking statements. Davis Commodities Limited assumes no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, please contact: Davis Commodities Limited Investor Relations Department Email: [email protected] Celestia Investor Relations Dave Leung Email: [email protected]
