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Davis Commodities Assesses Stablecoin Settlement and CFD Platform to Advance Digitized Agri-Trade Across Emerging Markets

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Davis Commodities (Nasdaq: DTCK) announced its exploration of stablecoin settlement infrastructure and CFD trading framework to modernize agricultural trading. The company aims to reduce settlement friction in emerging markets through two key initiatives:

The stablecoin infrastructure could potentially handle $200-250 million in annual settlement volume by 2027, offering up to 90% reduction in settlement time and 40-60% cost savings. The CFD platform is projected to generate $40-60 million in incremental hedging volume with a 5x increase in notional trade exposure.

The company is also exploring ESG-linked tokenization and a Fractal Bitcoin Reserve model, with technical pilots expected within the next two quarters.

Davis Commodities (Nasdaq: DTCK) ha annunciato l'esplorazione di un'infrastruttura di regolamento basata su stablecoin e di un framework per il trading di CFD al fine di modernizzare il commercio agricolo. L'azienda punta a ridurre gli attriti nei regolamenti nei mercati emergenti attraverso due iniziative principali:

L'infrastruttura stablecoin potrebbe gestire un volume di regolamento annuo compreso tra 200 e 250 milioni di dollari entro il 2027, offrendo una riduzione fino al 90% nei tempi di regolamento e un risparmio sui costi tra il 40 e il 60%. La piattaforma CFD è prevista generare un volume incrementale di copertura tra 40 e 60 milioni di dollari con un aumento di 5 volte nell'esposizione nominale delle operazioni.

L'azienda sta inoltre esplorando la tokenizzazione legata a criteri ESG e un modello Fractal Bitcoin Reserve, con prove tecniche previste entro i prossimi due trimestri.

Davis Commodities (Nasdaq: DTCK) anunció su exploración de una infraestructura de liquidación con stablecoins y un marco para el comercio de CFD con el objetivo de modernizar el comercio agrícola. La compañía busca reducir las fricciones en la liquidación en mercados emergentes mediante dos iniciativas clave:

La infraestructura de stablecoin podría manejar un volumen anual de liquidación de 200 a 250 millones de dólares para 2027, ofreciendo hasta un 90% de reducción en el tiempo de liquidación y un ahorro de costos del 40-60%. Se proyecta que la plataforma de CFD genere un volumen incremental de cobertura de 40 a 60 millones de dólares con un aumento de 5 veces en la exposición nominal de las operaciones.

La empresa también está explorando la tokenización vinculada a criterios ESG y un modelo Fractal Bitcoin Reserve, con pilotos técnicos previstos para los próximos dos trimestres.

Davis Commodities (나스ë‹�: DTCK)ëŠ� ë†ì—… 거래ë¥� 현대화하ê¸� 위해 스테ì´ë¸”ì½”ì¸ ê²°ì œ ì¸í”„ë¼ì™€ CFD 거래 프레임워í¬ë¥¼ íƒìƒ‰í•œë‹¤ê³� 발표했습니다. ì� 회사ëŠ� ì‹ í¥ ì‹œìž¥ì—서 ê²°ì œ 마찰ì� 줄ì´ê¸� 위해 ë‘� 가지 주요 ì´ë‹ˆì…”티브를 추진하고 있습니다:

스테ì´ë¸”ì½”ì¸ ì¸í”„ë¼ëŠ” 2027년까지 ì—°ê°„ 2ì–µ~2ì–� 5천만 달러ì� ê²°ì œ 규모ë¥� 처리í•� ìˆ� ìžˆì„ ê²ƒìœ¼ë¡� 예ìƒë˜ë©°, ê²°ì œ 시간ì� 최대 90% 단축하고 비용ì� 40~60% ì ˆê°í•� ìˆ� 있습니다. CFD 플랫í¼ì€ 4천만~6천만 달러ì� 추가 헤징 거래ëŸ�ì� 창출하고 명목 거래 ë…¸ì¶œì€ 5ë°� ì¦ê°€í•� 것으ë¡� 예ìƒë©ë‹ˆë‹�.

ë˜í•œ 회사ëŠ� ESG 연계 토í°í™”와 프랙íƒ� ë¹„íŠ¸ì½”ì¸ ë¦¬ì €ë¸� 모ë¸ë� íƒìƒ‰ 중ì´ë©�, 향후 ë‘� 분기 ë‚´ì— ê¸°ìˆ  시범ì� 계íší•˜ê³  있습니다.

Davis Commodities (Nasdaq : DTCK) a annoncé son exploration d'une infrastructure de règlement en stablecoin et d'un cadre de trading de CFD afin de moderniser le commerce agricole. La société vise à réduire les frictions de règlement dans les marchés émergents grâce à deux initiatives clés :

L'infrastructure stablecoin pourrait potentiellement gérer un volume annuel de règlement de 200 à 250 millions de dollars d'ici 2027, offrant jusqu'à 90 % de réduction du temps de règlement et des économies de coûts de 40 à 60 %. La plateforme CFD devrait générer un volume de couverture supplémentaire de 40 à 60 millions de dollars avec une augmentation de 5 fois de l'exposition notionnelle des transactions.

La société explore également la tokenisation liée aux critères ESG et un modèle Fractal Bitcoin Reserve, avec des pilotes techniques prévus au cours des deux prochains trimestres.

Davis Commodities (Nasdaq: DTCK) gab bekannt, dass das Unternehmen eine Stablecoin-Abwicklungsinfrastruktur und einen CFD-Handelsrahmen erforscht, um den Agrarhandel zu modernisieren. Das Unternehmen zielt darauf ab, Abwicklungshemmnisse in Schwellenmärkten durch zwei zentrale Initiativen zu reduzieren:

Die Stablecoin-Infrastruktur könnte bis 2027 ein jährliches Abwicklungsvolumen von 200 bis 250 Millionen US-Dollar bewältigen und dabei die Abwicklungszeit um bis zu 90 % reduzieren sowie Kosten um 40-60 % einsparen. Die CFD-Plattform wird voraussichtlich ein zusätzliches Absicherungsvolumen von 40 bis 60 Millionen US-Dollar generieren, mit einer fünffachen Steigerung der nominalen Handelsvolumina.

Das Unternehmen untersucht außerdem ESG-gebundene Tokenisierung und ein Fractal Bitcoin Reserve Modell, wobei technische Pilotprojekte in den nächsten zwei Quartalen erwartet werden.

Positive
  • Potential 90% reduction in settlement time and 40-60% transaction cost savings
  • Projected $200-250 million annual settlement volume by 2027, doubling current throughput
  • Expected 5x increase in notional trade exposure through CFD platform
  • New revenue streams from spread commissions and liquidity provision
Negative
  • Initiatives are still in early-stage evaluation with no formal launch timeline
  • Success depends on regulatory approval and market alignment
  • Implementation requires complex integration with multiple partners and systems

Insights

Davis Commodities exploring blockchain-based settlement system and CFD platform to potentially boost efficiency and revenue in agricultural trading across emerging markets.

Davis Commodities is strategically positioning itself at the intersection of agricultural commodities trading and financial technology with its exploration of two potentially transformative initiatives: a stablecoin settlement system and a CFD trading platform. This represents a forward-looking pivot toward financial infrastructure provider status beyond traditional commodity trading.

The stablecoin infrastructure, if implemented, aims to address fundamental inefficiencies in cross-border payments across emerging markets. The company's internal modeling projects impressive operational metrics: 90% reduction in settlement time and 40-60% transaction cost savings. More significantly, this could support $200-250 million in annual settlement volume by 2027, which would more than double current throughput.

The parallel CFD (Contract for Difference) platform initiative targets institutional customers seeking commodity exposure without physical delivery requirements. This could expand Davis's addressable market substantially, with projections indicating a 5x increase in notional trade exposure and $40-60 million in incremental hedging volume.

What's particularly notable is the company's alignment with regulatory developments like the U.S. GENIUS Act for stablecoin regulation, suggesting a thoughtful approach to compliance in an evolving landscape. The company appears to be conducting extensive feasibility studies before committing to implementation, with technical pilots expected within the next two quarters.

From a strategic perspective, Davis is attempting to transform from a traditional agricultural trading firm into a hybrid model that combines commodity expertise with financial infrastructure services—potentially creating new revenue streams through spread commissions and liquidity provision while addressing persistent friction points in emerging market trade.

SINGAPORE, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Davis Commodities Limited (Nasdaq: DTCK), a Nasdaq-listed agricultural trading firm headquartered in Singapore, announced that it is reviewing the potential development of a stablecoin-enabled settlement infrastructure and a multi-region CFD (Contract for Difference) trading framework as part of its digital capital market strategy.

These early-stage initiatives reflect Davis Commodities� intent to explore more efficient, transparent, and ESG-aligned commodity finance models—particularly across high-growth, underbanked markets in Africa, Latin America, and Southeast Asia.

Targeting Cross-Border Friction in Trade Settlement

Legacy cross-border payment systems—especially in SWIFT-dependent jurisdictions—frequently incur week-long delays, high FX spreads, and limited accessibility. Davis Commodities is conducting feasibility modeling on a stablecoin-pegged infrastructure, potentially backed by ESG-certified agricultural reserves such as ISCC rice and Bonsucro sugar.

According to initial simulations, the potential benefits include:

  • Up to 90% reduction in average settlement time
  • 40â€�60% estimated transaction cost savings
  • Faster liquidity velocity across 30+ trading markets

If adopted, the stablecoin rails could support USD 200�250 million in annual settlement volume by 2027—more than doubling the current throughput across traditional banking corridors.

Expanding Revenue Scope via Modular CFD Layer

Davis Commodities is concurrently evaluating a non-deliverable CFD platform that may serve institutional buyers, suppliers, and regional hedgers seeking commodity exposure without physical delivery.

Early projections indicate:

  • Potential 5x increase in notional trade exposure over 24 months
  • USD 40â€�60 million in incremental hedging volume
  • New digital revenue lines from spread commissions and liquidity provision

The CFD infrastructure is intended to integrate real-time price discovery, ESG risk metrics, and regionalized settlement logic, allowing Davis Commodities to serve as both originator and infrastructure provider.

Algorithmic Optimization Meets ESG Tokenization

As part of its programmable finance roadmap, Davis Commodities is also exploring:

  • Traceable stablecoin rails embedded with logistics and compliance data
  • A Fractal Bitcoin Reserve (FBR) model to strengthen treasury agility
  • Pilot-scale participation in USD 80â€�100 million tokenized deployments, in alignment with the recently enacted U.S. GENIUS Act, which regulates fiat-backed stablecoins under federal licensing

Internal models estimate that successful adoption of this hybrid architecture could raise Return on Equity (ROE) from current baseline levels, contingent on regulatory and market alignment.

Executive Commentary

“Modern commodity trade is no longer just about goods—it’s about programmable capital, traceable flows, and regulatory adaptability,� said Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities. “We are studying how digital settlement, algorithmic hedging, and ESG-linked assets can converge to form a more inclusive and efficient trading network.�

Outlook and Ecosystem Partnerships

While no formal launch or deployment has occurred, Davis Commodities is working with:

  • Digital infrastructure developers
  • Cross-border legal advisors
  • Custodians, stablecoin protocol enablers, and exchange partners

Technical pilots for both stablecoin settlement and the modular CFD system are expected to be scoped within the next two quarters, with a focus on algorithm-driven optimization and regulatory alignment.

About Davis Commodities Limited

Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries, as of the fiscal year ended December 31, 2024.

For more information, please visit the Company’s website: ir.daviscl.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, within the meaning of the “safe harbor� provisions of the United States Private Securities Litigation Reform Act of 1995, relating to the fundraising plans of Davis Commodities Limited. These forward-looking statements generally can be identified by terms such as “believe,� “project,� “predict,� “budget,� “forecast,� “continue,� “expect,� “anticipate,� “estimate,� “intend,� “strategy,� “future,� “opportunity,� “plan,� “may,� “could,� “should,� “will,� “would,� and similar expressions or negative versions of those expressions.

Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, therefore, subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements contained in this press release. The Company’s filings with the SEC identify and discuss other important risks and uncertainties that could cause events and results to differ materially from those indicated in these forward-looking statements.

Forward-looking statements speak only as of the date on which they are made. Readers are cautioned not to place undue reliance upon forward-looking statements. Davis Commodities Limited assumes no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.



For more information, please contact:

Davis Commodities Limited
Investor Relations Department
Email: [email protected]

Celestia Investor Relations
Dave Leung
Email: [email protected]

FAQ

What is Davis Commodities' (DTCK) new digital strategy for agricultural trading?

Davis Commodities is exploring a stablecoin settlement system and CFD trading platform to improve agricultural trading efficiency, targeting up to 90% reduction in settlement time and 40-60% cost savings.

How much settlement volume does Davis Commodities expect from its stablecoin infrastructure?

Davis Commodities projects $200-250 million in annual settlement volume by 2027, more than doubling their current traditional banking throughput.

What is the expected trading volume increase for Davis Commodities' CFD platform?

The company expects a 5x increase in notional trade exposure over 24 months and $40-60 million in incremental hedging volume.

When will Davis Commodities launch its stablecoin and CFD platforms?

Technical pilots for both platforms are expected to be scoped within the next two quarters, though no formal launch date has been announced.

How will Davis Commodities' digital initiatives affect emerging markets?

The initiatives aim to reduce settlement friction in underbanked markets across Africa, Latin America, and Southeast Asia by providing faster, more efficient trading infrastructure.
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