Davis Commodities reviews $2.5 billion digital commodity treasury model

Published 02/10/2025, 17:18

Davis Commodities Limited (DTCK) announced it is reviewing a proposed "commodity treasury" framework connected to its Real Yield Token initiative. The Singapore-based agricultural commodity trading company said the model would explore how tokenized agricultural reserves, commodity futures, and programmable settlement systems could scale into a multi-billion-dollar liquidity system for global agri-finance.

According to preliminary internal scenarios, the framework could potentially reach $2.5 billion in tokenized commodity reserves within 36 months. The company projects $500-700 million in annual transaction throughput under ESG-certified commodities, including ISCC-certified rice, Bonsucro-verified sugar, and sustainable oils.

The proposed system would create commodity-backed reserves designed to stabilize settlement flows across more than 40 trading corridors in Asia, Africa, and the Middle East. Davis Commodities said the liquidity recycling mechanisms could target up to 30% faster circulation velocity compared to conventional bank-settled trade finance.

"We are studying how real commodities, digital yield architecture, and programmable settlement can converge into a capital-efficient treasury system," said Li Peng Leck, Executive Chairwoman of Davis Commodities. "Our intent is to model a scalable backbone that could support both institutional hedging and retail-driven ecosystems in emerging markets."

The company described the commodity treasury as a structured pool of tokenized reserves linked to yield-bearing digital assets that would act as a backstop for cross-border settlement, hedging, and ESG-linked financing. The proposed model would embed sustainability certifications directly into tokenized reserves.

Davis Commodities said the framework is currently under review with ESG auditors, blockchain infrastructure providers, and cross-border liquidity specialists. The company stated no implementation commitments have been made and any pilot or launch would remain subject to regulatory consultation, market readiness, and stakeholder feedback.

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