Davis Commodities stock soars as company explores tokenized yield corridor

Published 03/11/2025, 18:56
© Reuters.

Investing.com -- Davis Commodities Limited (NASDAQ:DTCK) stock surged 32.1% on Monday after the company announced it is evaluating the creation of an inter-regional, ESG-tokenized yield corridor built around its Real Yield Token ecosystem and certified commodity finance.

The proposed digital infrastructure aims to connect Asia-Africa-Latin America trade routes by linking agricultural commodity transactions with blockchain settlement and digital yield instruments. According to the company’s indicative modeling, the project could reach $1 billion in corridor capitalization under staged rollouts and potentially deliver 50%-80% efficiency gains in trade settlement costs compared to traditional SWIFT-based systems.

The tokenized corridor would incorporate sustainability certifications such as Bonsucro for sugar and ISCC for rice directly into yield flows, potentially unlocking over $250 million in blended finance opportunities annually. This approach could allow impact funds and institutional investors to access verified commodity-backed yield instruments.

"Emerging markets are often trapped between high FX spreads and slow banking cycles," said Li Peng Leck, Executive Chairwoman of Davis Commodities . "By evaluating a tokenized yield corridor, we aim to study how programmable capital can mobilize sustainable commodity trade at scale while maintaining transparency and regulatory alignment."

The company is currently in discussions with regional agri-traders, digital asset custodians, ESG certifiers, and blockchain protocol developers. Any operational rollout remains contingent on regulatory reviews, market conditions, and stakeholder feedback.

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