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Shares of Davis Commodities Limited (NASDAQ: DTCK) jumped more than 32% on Monday after the company revealed it is exploring the launch of a new blockchain-based trade and finance system. The proposed project would create an “inter-regional, ESG-tokenized yield corridor” that ties into the company’s Real Yield Token ecosystem and certified commodity finance operations.
In simple terms, the company wants to build a digital trade network connecting Asia, Africa, and Latin America. This system would use blockchain technology to make agricultural commodity transactions faster, cheaper, and more transparent. Davis Commodities says the new model could cut trade settlement costs by as much as 50% to 80% compared to the traditional banking systems that rely on SWIFT transfers.
Early projections suggest the project could reach around $1 billion in total value once fully rolled out. The corridor would also include sustainability certifications like Bonsucro for sugar and ISCC for rice, directly linking verified eco-friendly production with digital financial instruments. The company estimates this could unlock more than $250 million in sustainable or “blended” finance opportunities each year, attracting institutional investors interested in environmentally responsible investments.
Li Peng Leck, Executive Chairwoman of Davis Commodities, said that emerging markets often struggle with expensive currency exchange rates and slow banking systems. She added that the company’s plan is to study how “programmable capital,” or blockchain-enabled finance, can help move money more efficiently while keeping everything transparent and aligned with regulations.
Davis Commodities is currently in talks with regional agricultural traders, blockchain developers, ESG certification bodies, and digital asset custodians. The company emphasized that any rollout will depend on market conditions, regulatory approvals, and partner feedback before moving forward.