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SINGAPORE - Davis Commodities Limited (Nasdaq:DTCK), a $21.29 million market cap agricultural trading company, announced Wednesday it is evaluating digital transformation initiatives focused on stablecoin-based settlements and modular CFD infrastructure for agricultural commodities trading. According to InvestingPro data, the company’s stock has shown significant volatility, currently trading at $0.83 per share.
The Singapore-based agricultural trading firm, which generated revenue of $132.37 million in the last twelve months, is exploring a stablecoin-powered settlement system that could potentially reduce settlement time by up to 90% and transaction fees by 40-60%, according to the company’s press release. The system would be collateralized by certified agricultural products such as ISCC-certified rice and Bonsucro-verified sugar.
Davis Commodities projects the digital settlement system could reach $200-250 million in annual throughput within 18-24 months, with potential capacity of $800 million by 2028, subject to feasibility and market adoption.
The company is also evaluating a CFD infrastructure for agricultural commodity hedging that internal simulations suggest could increase notional trade exposure to $300 million within 18 months and generate $40-60 million in projected hedging volume.
Additionally, Davis is exploring a hybrid architecture combining ESG-verified stablecoin settlements, tokenized agricultural assets, and what it terms "Fractal Bitcoin Reserves" for liquidity management.
"We are entering a new era of programmable trade, where capital flows and physical goods move with blockchain precision," said Li Peng Leck, Executive Chairwoman of Davis Commodities, in the statement.
The initiatives remain in evaluation and pilot planning phase, with technical pilots expected to be scoped within the next two quarters. The company stated it is engaging with blockchain infrastructure providers, ESG certifiers, and legal advisors across Singapore, the U.S., and emerging markets.
Davis Commodities specializes in trading sugar, rice, and oil and fat products across Asia, Africa, and the Middle East under its Maxwill and Taffy brands. InvestingPro analysis reveals the company operates with a modest gross profit margin of 1.76% and moderate debt levels. For deeper insights into Davis Commodities’ financial health and growth potential, including additional ProTips and detailed metrics, investors can explore InvestingPro’s comprehensive analysis tools.
In other recent news, Davis Commodities Limited has announced several strategic initiatives and expansions. The company revealed plans to expand its operations across Africa, Asia, and the Middle East, following a successful $30 million capital raise. This expansion is driven by increasing global demand for sugar and rice, with the company aiming to scale procurement volumes and broaden its geographic reach. Additionally, Davis Commodities is targeting a $100 million growth in its sugar trading operations in Asia, focusing on markets like India, Pakistan, and China, which are experiencing supply shortages.
In the realm of digital assets, Davis Commodities has committed to a $30 million strategic plan that includes integrating blockchain technology and digital assets into its operations. Up to 50% of these funds will be used to develop a blockchain-powered platform to tokenize agricultural commodities, enhancing cross-border efficiency and supply chain tracking. Furthermore, the company is conducting a strategic review of a Fractal Bitcoin Reserve model and tokenized ESG commodity infrastructure. As part of this initiative, Davis Commodities plans to allocate 15% of the funds toward Bitcoin reserves, with the possibility of increasing this allocation to 40%. These developments reflect the company’s broader capital strategy roadmap and its focus on asset diversification.
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