Davis Commodities Evaluates Stablecoin Licensing and ESG Tokenization Frameworks Amid Growing Momentum in Regulated Digital Finance
SINGAPORE, July 25, 2025 (GLOBE NEWSWIRE) -- Davis Commodities Limited (NASDAQ:DTCK), a Singapore-headquartered agricultural trading company, today announced a strategic assessment of U.S.-based stablecoin licensing and ESG-linked tokenized commodity flows, in response to rapidly evolving digital asset regulations and increasing institutional demand for compliant blockchain infrastructure.
This evaluation follows the recent passage of the GENIUS Act, signed into U.S. law on July 17, 2025, which establishes a federal regulatory framework for fiat-backed stablecoin issuers and digital settlement providers. The move is widely regarded by industry analysts as a major regulatory milestone enabling institutional-grade blockchain adoption in cross-border finance.
Toward a $1B+ ESG Tokenized Trade Ecosystem
Davis Commodities has initiated preparatory steps to establish a wholly owned U.S. entity—Davis Digital Assets Inc.—to explore potential issuance of regulated digital instruments. The company estimates, based on early modeling, that tokenized trade structures across its ESG-certified product lines could unlock $1–3 billion in addressable settlement volume over the next 36 months.
This assessment reflects trends similar to those seen in public market peers such as Circle, whose digital dollar infrastructure has shown increasing institutional adoption since its U.S. listing.
Introducing "DCC": A Stablecoin Concept for ESG-Linked Agri-Trade
The company is evaluating the viability of a proprietary digital settlement layer—Davis Commodities Coin (DCC)—designed to support traceable trade of certified products such as Bonsucro-certified sugar and ISCC-certified rice.
If launched, DCC could be programmed to enable:
- T+0 to T+1 settlement cycles, reducing reconciliation friction by an estimated 80%
- Enhanced working capital turnover, with 2–3x faster capital rotation
- Settlement of up to $500 million in annual notional trade volume across Asia, Africa, and the Middle East
All figures reflect internal modeling and remain subject to further feasibility studies and regulatory alignment.
Building Tokenized Real-World Commodity Infrastructure
In parallel, Davis Commodities is exploring tokenization frameworks that could digitize verified agri-assets into Real-World Asset (RWA) tokens. These frameworks aim to serve institutional investors seeking ESG-integrated, blockchain-native exposure to physical commodities.
Potential platform features under evaluation include:
- ESG metadata and provenance traceability
- Smart contract-based invoice settlement and yield structures
- Integration with compliant custodians, price oracles, and AML/KYC layers
According to research from Citi and McKinsey, global tokenized asset markets could exceed $10 trillion by 2030, with ESG finance representing a growing sub-segment.
Capturing Digital Capital Momentum
Davis Commodities believes that aligning commodity flows with regulated tokenized finance may enhance:
- Access to green infrastructure funds, sovereign-linked ESG capital, and DeFi-adjacent investors
- Algorithmic credit scoring using live supply chain metrics
- Compliant cross-chain, multi-currency agri-settlement gateways
Secondary token markets—anchored in real-world outputs—could also pave the way for new ESG-yield instruments tied to global food trade.
Executive Commentary
Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities, stated:
"As frameworks like the GENIUS Act shape a new era of regulated digital finance, we are actively exploring how programmable capital can intersect with verified commodity flows. Our goal is to responsibly bridge traditional agri-trade with transparent, token-enabled capital solutions that scale."
Regulatory-First, Innovation-Led
No token issuance or stablecoin launch has taken place. All initiatives remain subject to internal review, regulatory consultation, and technological readiness. Davis Commodities will continue engaging stakeholders across finance, sustainability, and compliance to determine next steps.
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]