With RWA tokenization projected to reach $16 trillion by 2030, Davis Commodities’ multimillion-dollar agricultural tokenization push positions it as a first mover in digitizing sugar, rice, and edible oils, while simultaneously building a Bitcoin war chest.
According to a June 16 press release, Nasdaq-listed agricultural trader Davis Commodities (DTCK) is transforming its business model by integrating Bitcoin (BTC) reserves and real-world tokenization, positioning itself at the center of a rapidly digitizing global trade ecosystem.
The dual-pronged strategy, funded by a newly approved $30 million capital raise, will see the Singapore-based company deploy nearly two-thirds of the funds toward building Bitcoin reserves and launching RWA tokenization projects focused on staples such as sugar, rice, and edible oils.
For a company moving physical crops across 20 countries, the initiative signals a fundamental rethinking of how agricultural value can be stored, traded, and leveraged in the blockchain era.
The Bitcoin hedge and tokenization playbook
Davis Commodities’ bold strategy begins with BTC, which the company is treating not as a speculative asset but as a long-term strategic reserve. It plans to allocate $4.5 million (15% of the raise) to Bitcoin initially, scaling up to 40 percent ($12 million total) as market conditions evolve.
Bitcoin’s near 150% surge in 2023 and nearly 120% rally in 2024 proved its merit as both a macro hedge and high-growth asset, a duality that appeals to a traditional commodities trader navigating volatile forex markets and inflationary pressures.
But the real disruption lies in the other half of Davis’s strategy: $15 million earmarked for tokenizing real-world agricultural assets. By issuing blockchain-based digital twins of physical sugar, rice, and edible oil inventories, Davis could unlock liquidity trapped in warehouse receipts and streamline cross-border settlements, reducing days-long delays to near-instant transactions.
The potential upside is significant. Industry analysts project RWA tokenization to grow into a $16 trillion market by 2030, and early estimates suggest Davis’s tokenized agri-portfolio alone could generate $50 million in annual revenue within two years. For context, that’s more than double the company’s entire 2024 net income.
“By integrating Bitcoin reserves and RWA tokenization, we are not only strengthening our position as a leading agricultural trader but also 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,” the company’s CEO said.
According to the statement, Davis Commodities will use the remaining 10 percent of the funds to advance its technology infrastructure, bolster security measures, and foster strategic partnerships.
