Davis Commodities pushes $15M into tokenizing rice, sugar, and oils for faster trade cycles.
Company shifts $12M into Bitcoin reserves, targeting long-term gains and hedging against inflation.

Davis Commodities Limited, a Singapore-based firm listed on Nasdaq, is investing $30 million to integrate cryptocurrency into its agricultural trading operations. This marks one of the rare occasions where a commodities firm in Asia is officially adopting Bitcoin for its treasury operations. 

The company has confirmed that 40% of the investment, or $12 million, will be dedicated to building Bitcoin reserves. In the initial rollout, $4.5 million is being deployed. Bitcoin’s gains — 156% across 2023 and over 14% in early 2025 — are cited as the basis for this decision. The company sees Bitcoin not just as a hedge against inflation but also as a source of potential long-term growth. 

Nasdaq-listed Davis Commodities (DTCK) announced a $30 million strategic initiative combining Bitcoin reserves and RWA tokenization to reshape global agricultural trade. The firm will allocate 40% to BTC as an inflation hedge and 50% to tokenizing assets like sugar and rice,…

— Wu Blockchain (@WuBlockchain) June 16, 2025

Executives expect that these reserves could generate measurable returns over the next three years, depending on market performance. The plan is aimed at boosting resilience, spreading risk, and supporting long-term financial targets. 

Half of Capital Heads to Real-World Asset Tokenization

A larger share of the budget, 50%, or $15 million, has been earmarked for tokenizing agricultural assets. This includes commodities like rice, sugar, and edible oils. The process of tokenization, still new in agriculture, is expected to shorten trade cycles and improve access to markets by introducing digital ownership on blockchain systems.

Industry estimates put the value of the tokenized real-world asset market at $16 trillion globally by the year 2030. By stepping into this early, Davis Commodities plans to position itself ahead in this developing sector. The company forecasts that within 24 months, tokenization could bring in as much as $50 million annually through reduced transaction costs and better liquidity access.

Li Peng Leck, Executive Chairman and CEO of Davis Commodities, stated

By integrating bitcoin reserves and RWA tokenization, we are embracing the vast opportunities at the convergence of traditional commodities and digital assets. This strategy is designed to deliver sustainable growth, enhance investor returns, and ensure we remain at the forefront of innovation in global trade.

Remaining Funds Support Infrastructure and Partnerships

Davis Commodities plans to spend the remaining $3 million of its $30 million budget on building secure systems and forming new partnerships. This effort is meant to support digital asset integration while keeping operations stable. The setup should give the company flexibility for both present and future digital efforts.

Separately, on April 30, Davis Commodities confirmed a joint venture with a Malaysian agri-processing firm. The agreement covers the production and export of 180,000 metric tons of food-grade input annually to a Northeast Asian buyer. Thanks to the ASEAN Free Trade Agreement, this trade will bypass tariff costs and reach one of the region’s major importers.

Although the company’s stock ended lower on June 16, pre-market activity shows an increase of over 8%, bringing the price to $0.85. In comparison, Bitcoin is trading at $106,594, down 0.55% over the past 24 hours.

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Filed under: Bitcoin - @ June 17, 2025 1:21 pm