Davis Commodities stock rises on Bitcoin reserve and tokenization strategy review

Published 25/07/2025, 15:00
© Reuters.

Investing.com -- Davis Commodities Ltd (NASDAQ:DTCK) stock gained 6.3% after the Singapore-based agricultural trading firm announced it is conducting a strategic review of a Fractal Bitcoin Reserve model and tokenized ESG commodity infrastructure.

The company is evaluating these initiatives as part of its broader capital strategy roadmap, aligning with projections of a $16 trillion global real-world asset (RWA) tokenization market by 2030. Davis cited the expanding use of Bitcoin as a corporate treasury asset—an approach pioneered by firms like Strategy (NASDAQ:MSTR)—as inspiration for potential treasury diversification.

The proposed Fractal Bitcoin Reserve framework envisions a hybrid treasury structure backed by Bitcoin, stablecoins, and tokenized instruments. Internal models suggest this approach could improve capital deployment efficiency by up to 30-40% and increase treasury adaptability in decentralized liquidity environments.

Additionally, Davis is evaluating a traceable tokenization framework for certified agricultural products, beginning with Bonsucro-certified sugar and ISCC-certified rice. This initiative could potentially tap into a projected $5-10 billion ESG-linked agri-investment market and reduce trade financing cycle times by up to 60% through smart contract settlement.

"We believe the convergence of Bitcoin treasury models, tokenized real-world assets, and ESG-driven capital formation is creating a rare window for innovation," said Li Peng Leck, Executive Chairwoman of Davis Commodities.

The company emphasized that no token issuance, stablecoin launch, or reserve deployment has occurred at this stage. All initiatives remain under internal review, subject to regulatory engagement and operational feasibility assessments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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