SINGAPORE, July 25, 2025 — Davis Commodities Limited (Nasdaq: DTCK), an agricultural trading company based in Singapore, has announced a strategic review of a Fractal Bitcoin Reserve (FBR) model and a tokenized ESG commodity infrastructure. This review is prompted by the increasing interest from institutional investors in real-world asset (RWA) tokenization, programmable finance, and blockchain-based treasury management tools.

These evaluations are part of the company’s broader capital strategy, which is in line with industry forecasts projecting a $16 trillion global market for RWA tokenization by 2030. The company also mentioned the growing trend of using Bitcoin as a corporate treasury asset, an approach first adopted by U.S. firms like Strategy (Nasdaq: MSTR), as inspiration for diversifying its treasury.

Reimagining Reserves: The Fractal Bitcoin Reserve (FBR) Concept

The proposed FBR framework involves a hybrid treasury structure supported by Bitcoin, stablecoins, and tokenized instruments, aiming to enable programmable collateralization, algorithmic finance, and robust cross-border trade.

Preliminary internal models suggest FBR could:

  • Potentially increase capital deployment efficiency by 30–40%
  • Facilitate bridging between fiat currencies, stablecoins, and ESG-linked agricultural tokens
  • Enhance treasury visibility and flexibility in decentralized liquidity environments

If developed further, the FBR could become part of a dual-layer balance sheet, combining physical inventory with programmable digital assets to support advanced capital formation.

ESG Commodity Tokenization: Real-World Agriculture Meets Digital Finance

Davis Commodities is also assessing a system for tokenizing certified agricultural products, starting with Bonsucro-certified sugar and ISCC-certified rice. These tokenized real-world assets (RWAs) could provide traceable, ESG-compliant instruments for institutional investors.

Potential advantages being considered:

  • Access to a projected $5–10 billion market for ESG-linked agricultural investments
  • Reduce trade financing cycle times by up to 60% through smart contract settlement
  • Create secondary markets for exposure to certified commodities, with blockchain-based audit trails and ESG scorecards integrated at the token level

Global Context: Regulatory Tailwinds and Market Signals

These evaluations are happening alongside positive regulatory developments, such as the U.S. GENIUS Act and Hong Kong’s Stablecoin Ordinance, which indicate the emergence of global frameworks for regulated digital assets and programmable finance infrastructure.

According to independent research:

  • Over $16 trillion in global assets may be tokenized by 2030
  • ESG investment mandates are expected to drive $10 trillion in green capital allocation
  • Stablecoin settlement layers are projected to exceed $5 trillion in annual transaction value within the next five years

Executive Insight

Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities, stated:

“We believe the combination of Bitcoin treasury models, tokenized real-world assets, and ESG-focused capital formation is creating a unique opportunity for innovation. While we are still in the early stages of exploration, we are dedicated to understanding how programmable digital reserves and certified commodity tokens can transform our role in global agricultural trade finance.”

Compliance-First Strategy with a Long-Term Vision

Davis Commodities confirms that no tokens have been issued, no stablecoins have been launched, and no reserves have been deployed at this time. All initiatives are still under internal review and are subject to regulatory approval, ecosystem collaboration, and operational feasibility.

This strategic assessment reflects the company’s long-term goal of becoming a digitally advanced, ESG-aligned commodity platform that connects sustainable trade with capital efficiency, technological transparency, and real-world impact.

About Davis Commodities Limited

Davis Commodities Limited, based in Singapore, is an agricultural commodity trading company specializing in the trade of sugar, rice, and oil and fat products in markets across Asia, Africa, and the Middle East. The Company sources, markets, and distributes commodities under its two main brands, Maxwill and Taffy, in Singapore. Additionally, the Company provides customers with complementary services such as warehouse handling, storage, and logistics. As of the fiscal year ended December 31, 2024, the Company utilizes a global network of third-party commodity suppliers and logistics providers to distribute its products to customers in over 20 countries.

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

Forward-Looking Statements

This press release contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995, regarding Davis Commodities Limited’s fundraising plans. These statements can often be identified by terms like “believe,” “project,” “predict,” and similar expressions.

Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties. Many factors could cause actual events to differ significantly from these statements. The Company’s filings with the SEC identify and discuss important risks and uncertainties.

These statements are valid only as of the date they are made, and Davis Commodities Limited disclaims any obligation to update or revise them.

CONTACT: For more information, please contact:

Davis Commodities Limited
Investor Relations Department
Email: investors@daviscl.com

Celestia Investor Relations
Dave Leung
Email: investors@celestiair.com

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