- Davis Commodities Limited has drafted an investment plan for $30M to launch a blockchain-powered platform.
- The company plans to hold 40 percent of its funds in Bitcoin to improve treasury liquidity.
- The Bitcoin reserve will be used for transactions and to support strategic growth initiatives.
Davis Commodities Limited (Nasdaq: DTCK), a Singapore-based agricultural trading firm, has announced a $30 million initiative to integrate blockchain technology and digital assets into its operations. The company will allocate up to 40% of the funds to a Bitcoin reserve and invest up to 50% in a blockchain-powered platform designed to tokenize sugar, rice, and edible oils. This strategy aims to enhance global commodity finance and improve cross-border trade efficiency.
Blockchain Platform For Commodity Trading
The upcoming tokenization platform will convert physical agricultural commodities into tradable digital assets using blockchain. This system is going to employ smart contracts to automate transactions and reduce intermediary costs. On top of that, the system will offer support for on-chain tracking to ensure transparency across supply chains.
Besides reducing transaction fees, the platform will offer near-instant settlements for global trades. Tokenized assets will also enable fractional ownership, creating new investment opportunities. Moreover, programmable yields will allow institutions to create custom financial products from real-world commodities.
The company will also offer tokenized collateralization. This feature will let institutional lenders unlock liquidity by using tokenized commodities as financial instruments. Hence, it expands access to agricultural financing on a global scale.
Bitcoin Reserve to Bolster Treasury and Risk Strategy
As part of the digital asset strategy, Davis will set aside 40% of the $30 million fund to hold Bitcoin on the balance sheet. According to the company, this reserve will enhance liquidity and support for the strategic growth. The strategy includes risk mitigation measures and supports market transactions across different time zones. Consequently, Davis is preparing for 24/7 liquidity access through crypto markets.
Recently, DDC Enterprise Limited secured up to $528 million to grow its Bitcoin reserves and further grow as a global BTC leader. This indicates Bitcoin’s growing role in the traditional markets and the need for corporates to adopt this new strategy for sustainable growth.
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Infrastructure and Market Positioning Backed by Data
The final 10% of funds will support blockchain infrastructure, cybersecurity systems, and regulatory compliance frameworks. These will ensure secure, scalable operations and alignment with legal standards worldwide.
Davis Commodities projects strong revenue growth within 24 months of platform launch. The company believes that converting agricultural commodities into digital tokens will simplify global trade processes and increase access to high-value assets. This approach is intended to attract institutional lenders, crypto funds, and digital asset managers seeking new, real-world-backed instruments.
The tokenization market value of real-world assets (RWA) is expected to reach over 16 trillion dollars by 2030, as estimated by one of the forecasts made by the Boston Consulting Group. By taking the very first and very strategic step of tokenization and digital asset treasury, Davis acts as one of the major players in the rapidly growing RWA field. This highlights the ability of the company to define the future of blockchain throughout agricultural finance.
