SINGAPORE, Aug. 19, 2025 — Davis Commodities Limited (Nasdaq: DTCK), a Singapore-based agricultural trading firm, today announced ongoing strategic evaluations of tokenized yield instruments. These instruments are designed to broaden the company’s efforts in digitizing commodity finance.

The current approach under consideration builds upon Davis Commodities’ prior assessments of Real Yield Tokenization (RYT), stablecoin settlement layers, and flexible CFD structures. All these initiatives aim to link global agricultural trade with programmable liquidity and capital aligned with ESG (Environmental, Social, and Governance) principles.

Developing a Digital Infrastructure Worth Billions

Initial internal forecasts suggest that by 2030, tokenized yield-linked frameworks could account for USD 800 million to 1 billion in commodity-related transactions across key markets in Asia, Africa, and the Middle East.

Possible integration strategies involve:

  • Yield-linked tokens benchmarked against physical exports of sugar, rice, and oils & fats.
  • Cross-border stablecoin rails, projected to potentially decrease settlement time by 90–95% while supporting USD 250–300 million in annual transactions by 2027.
  • CFD-based commodity hedging, with preliminary pilot frameworks indicating USD 60–80 million in additional notional volumes.

These early models illustrate how traditional commodity finance could converge with digital yield structures in a manner that is both scalable and transparent.

Collaboration for Ecosystem and ESG Goals

The tokenized infrastructure under evaluation could serve as a foundation for algorithmic ESG traceability, directly embedding recognized certifications such as Bonsucro (for sugar) and ISCC (for rice) into tokenized yields.

Such integration may allow institutional and accredited investors to explore on-chain yield models connected with verifiable sustainable trade flows, aligning with global policies like the GENIUS Act in the U.S.

Remarks from Leadership

“Commodity-linked finance is evolving from isolated bilateral agreements to digital ecosystems that are programmable and broadly accessible,” stated Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities. “We believe that if proven effective, tokenized yield structures could be a crucial component in expanding agricultural trade into digital financial markets.”

Future Actions

Davis Commodities is currently engaging with:

  • Blockchain protocol developers who are investigating tokenized finance systems.
  • Custody and compliance providers specializing in regulated assets generating yields.
  • Local trade finance entities evaluating tokenized commodity transactions as possible additions to their balance sheets.

Initial pilot programs may be planned in the upcoming quarters, depending on market conditions and regulatory conformity.

Information on Davis Commodities Limited

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

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

Statements Regarding Future Outlook

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

Forward-looking statements represent forecasts, projections, and other assertions about future occurrences. These are founded on present expectations and assumptions, making them susceptible to risks and uncertainties. Numerous factors could lead to actual future outcomes significantly differing from the forward-looking statements in this release. The Company’s filings with the SEC detail and explain other substantial risks and uncertainties that might cause results and events to vary materially from what these forward-looking statements suggest.

Forward-looking statements are valid only as of their creation date. Readers should avoid placing excessive reliance on them. Davis Commodities Limited undertakes no responsibility, and explicitly disavows any intent or duty, to update or amend any forward-looking statements, whether due to new information, subsequent events, or any other reason.

CONTACT: For further details, please reach out to:

Davis Commodities Limited

Investor Relations Department

Email: investors@daviscl.com

Celestia Investor Relations

Dave Leung

Email: investors@celestiair.com