Davis Commodities has announced it is considering using stablecoins across CFD (Contract for Difference) operations for quicker settlements.
This initiative aims to modernize the trading of agricultural commodities, potentially reducing settlement times by up to 90% and transaction fees by 40-60%.
The company, which reported revenues of $132.37 million over the past year, is exploring a stablecoin settlement system collateralized by certified agricultural products, such as ISCC-certified rice and Bonsucro-verified sugar.
This innovative approach could enable Davis Commodities to achieve an annual throughput of $200-250 million within the next 18-24 months, with a long-term capacity target of $800 million by 2028, depending on the state of the market and stablecoin adoption.
Li Peng Leck, Executive Chairwoman of Davis Commodities, highlighted the transformative potential of this initiative:
We are entering a new era of programmable trade, where capital flows and physical goods move with blockchain precision.
In addition to stablecoin settlements, Davis Commodities is assessing a CFD infrastructure for agricultural commodity hedging and a hybrid architecture for ESG-verified stablecoin settlements.
These developments are currently still being monitored and are not fully launched.
