SINGAPORE, Aug. 19, 2025 — Davis Commodities Limited (Nasdaq: DTCK), an agricultural trading firm based in Singapore, announced today its examination of the potential use of Real Yield Tokenization (RYT). This review is part of the company’s wider initiative to digitalize commodity finance and improve capital flows that align with ESG principles.

RYT: A Prospective On-Chain Yield Mechanism

The RYT model, which is presently undergoing an initial evaluation, may offer eligible market participants a method to potentially participate in tokenized versions of actual agricultural trade flows, such as exports of rice, sugar, and oil & fat. This endeavor extends Davis Commodities’ prior investigations into stablecoin-based payment systems and adaptable Contract for Difference (CFD) frameworks.

Internal projections indicate that a fully integrated RYT system could potentially:

  • Account for up to USD 500–700 million in tokenized trade flows throughout Asia, Africa, and the Middle East by 2028, pending market acceptance and regulatory approval.
  • Offer theoretical yield avenues tied to actual trade performance, acting as a digital counterpart to traditional commodity-linked notes.
  • Allow institutional and qualified investors to investigate on-chain yield approaches connected to authenticated ESG supply chains.

Strengthening Davis Commodities’ Digital Infrastructure

Should it be implemented, RYT could be incorporated into the company’s wider efforts concerning:

  • Stablecoin settlement, which is anticipated to handle USD 200–250 million in yearly transaction volume by 2027, simultaneously cutting cross-border settlement duration by more than 90%.
  • CFD-based commodity hedging, with preliminary modeling forecasting an additional volume potential of USD 40–60 million.

Ultimately, these elements could merge into a programmable finance infrastructure, thereby aligning physical commerce with tokenized liquidity, adherence to ESG standards, and algorithmic risk management.

ESG Traceability and Compliance with the GENIUS Act

Evaluations of RYT are being conducted in light of the GENIUS Act, a recently enacted U.S. law that clarifies regulations for fiat- and yield-backed tokens. Davis Commodities is examining the practicability of incorporating ESG certifications—such as Bonsucro for sugar and ISCC for rice—into prospective models for yield-bearing tokens.

Executive Statement

“The financing of commodities is moving past traditional paper-based frameworks toward ecosystems that are programmable, compliant, and inclusive,” stated Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities. “Real Yield Tokenization embodies our aspiration to link physical agricultural supply chains with accountable digital capital involvement.”

Subsequent Actions

Although no token issuance or capital-raising endeavors have commenced, Davis Commodities is actively engaging with:

  • Providers of blockchain infrastructure
  • Specialists in custody and regulatory compliance solutions
  • Regional financial entities investigating tokenized financial instruments

Initial technical pilot projects could commence within the forthcoming two to three quarters, pending regulatory synchronization and prevailing capital market dynamics.

Concerning Davis Commodities Limited

Headquartered in Singapore, Davis Commodities Limited operates as an agricultural commodity trading enterprise, focusing on the trade of sugar, rice, and oil and fat products across diverse markets, including Asia, Africa, and the Middle East. The Company procures, promotes, and supplies commodities primarily under its Maxwill and Taffy brands within Singapore. Additionally, it offers clients of its commodity products supplementary and supportive services, such as warehouse management, storage, and logistical support. As of the fiscal year ending December 31, 2024, the Company leverages a well-established global network of third-party commodity providers and logistics firms to deliver sugar, rice, and oil and fat products to customers in more than 20 nations.

For further details, please access the Company’s website at: ir.daviscl.com.

Forward-Looking Statements

This press release includes certain forward-looking statements, as defined by the “safe harbor” clauses of the United States Private Securities Litigation Reform Act of 1995, pertaining to Davis Commodities Limited’s prospective fundraising initiatives. These forward-looking statements are typically identifiable by terms like “believe,” “project,” “predict,” “budget,” “forecast,” “continue,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,” and comparable phrases or their negative forms.

Forward-looking statements consist of predictions, forecasts, and other declarations regarding future occurrences, which are founded on present expectations and suppositions, thereby making them susceptible to risks and uncertainties. Numerous elements could lead to actual future outcomes diverging significantly from the forward-looking statements presented in this press release. The Company’s submissions to the SEC outline and detail other substantial risks and uncertainties that might cause events and results to vary considerably from what these forward-looking statements suggest.

Forward-looking statements are valid only as of their creation date. Readers are advised against placing excessive reliance on such statements. Davis Commodities Limited undertakes no responsibility, and explicitly renounces any intention or responsibility, to modify or update any forward-looking statements, whether due to new data, future happenings, or other circumstances.

CONTACT: For additional information, please reach out to:
Davis Commodities Limited
Investor Relations Department
Email: investors@daviscl.com

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