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Davis Commodities Limited (DTCK) announced it is assessing U.S.-based stablecoin licensing and ESG-linked tokenized commodity flows following the passage of new federal regulations.
The Singapore-based agricultural trading company said the evaluation responds to the GENIUS Act, which became U.S. law on July 17, 2025, establishing a federal regulatory framework for fiat-backed stablecoin issuers and digital settlement providers.
Davis Commodities has initiated steps to establish a wholly owned U.S. entity called Davis Digital Assets Inc. to explore potential issuance of regulated digital instruments. The company estimates tokenized trade structures across its ESG-certified product lines could generate $1-3 billion in addressable settlement volume over 36 months, based on internal modeling.
The company is evaluating a proprietary digital settlement layer called Davis Commodities Coin (DCC) designed to support traceable trade of certified products including Bonsucro-certified sugar and ISCC-certified rice. If launched, DCC could enable settlement cycles of T+0 to T+1, potentially reducing reconciliation friction by 80% and handling up to $500 million in annual trade volume across Asia, Africa, and the Middle East.
Davis Commodities is also exploring tokenization frameworks to digitize verified agricultural assets into Real-World Asset tokens for institutional investors seeking ESG-integrated, blockchain-native exposure to physical commodities.
"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," said Executive Chairwoman Li Peng Leck.
The company emphasized that no token issuance or stablecoin launch has occurred. All initiatives remain subject to internal review, regulatory consultation, and technological readiness assessments.
Davis Commodities trades sugar, rice, and oil and fat products across over 20 countries through its Maxwill and Taffy brands in Singapore.