Davis Commodities Evaluates Strategic Solana Reserve to Support ESG-Linked Digital Initiatives

Rhea-AI Summary

Davis Commodities (NASDAQ:DTCK), a Singapore-based agricultural commodities trading firm, announced plans to evaluate establishing a strategic reserve in Solana (SOL) cryptocurrency as part of its digital innovation strategy. The company is considering a 5-10% allocation of excess treasury funds to Solana, subject to risk evaluation.

The initiative focuses on three key areas: treasury diversification, tokenized commodity integration for ESG-certified agricultural trade, and infrastructure partnerships for stablecoin interoperability. The company cites Solana's high throughput of ~65,000 transactions per second and low transaction fees as key advantages for potential implementation in their operations.

Positive

• Potential diversification of treasury with 5-10% allocation to digital assets
• Strategic positioning in emerging blockchain technology for ESG-certified trade
• Access to high-throughput blockchain infrastructure with 65,000 transactions per second
• Potential cost reduction through low transaction fees on Solana network

Negative

• Exposure to cryptocurrency volatility risk through Solana investment
• Implementation and regulatory compliance uncertainties in digital asset strategy
• Early-stage initiative with unproven business impact

SINGAPORE, July 11, 2025 (GLOBE NEWSWIRE) --  Davis Commodities Limited (Nasdaq: DTCK), a Singapore-based global agricultural commodities trading firm, today disclosed its intention to evaluate the establishment of a strategic reserve in Solana (SOL), as part of its broader digital innovation and treasury diversification roadmap. This early-stage initiative reflects DTCK’s continued exploration of emerging blockchain ecosystems beyond Bitcoin and Ethereum, in line with evolving institutional interest in next-generation blockchain infrastructure.

Rethinking Digital Treasury: Why Solana?

As institutional adoption of digital assets accelerates, many forward-looking enterprises are considering blockchain networks that offer scalability and cost-efficiency. Solana, recognized for its high throughput (~65,000 transactions per second) and low transaction fees, has gained increased visibility among digital finance practitioners.

Davis Commodities is closely monitoring developments around Solana’s adoption by financial technology platforms and enterprise blockchain pilots. According to public reports, several global institutions—including participants in the R3 consortium—are exploring Solana-enabled tokenization frameworks. Industry observers have also noted increased treasury interest in Solana from digital asset managers and listed companies.

Potential Strategic Use Cases Under Evaluation

DTCK is currently assessing the feasibility of the following initiatives:

• Diversified Treasury Allocation: Consideration of a 5–10% allocation of excess treasury funds to Solana, subject to internal risk evaluation and compliance review.
• Tokenized Commodity Integration: Exploring the use of SOL as a utility asset for pilot projects involving tokenized ESG-certified agricultural trade and carbon-credit-linked settlements.
• Infrastructure Partnerships: Engaging in preliminary discussions with blockchain infrastructure providers to evaluate stablecoin interoperability and on-chain settlement functionality.
  

Broader Context: Growing Institutional Interest in Solana

Solana has gained significant traction in the digital asset space, driven by recent developments. In July 2025, the launch of a Solana-linked ETF with integrated staking strategies in the U.S. market marked a major step toward mainstream adoption. Additionally, third-party reports reveal that several Asian financial institutions are considering Solana reserves as part of their broader digital asset strategies.

Executive Commentary

Ms. Li Peng Leck, Executive Chairwoman of Davis Commodities, commented:

"As digital asset infrastructure matures, exploring technologies that enhance transparency, speed, and traceability in cross-border commodity flows is essential. Our evaluation of Solana demonstrates our focus on innovation and long-term impact, particularly at the intersection of ESG outcomes and blockchain efficiencies."

About Davis Commodities Limited

Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries, as of the fiscal year ended December 31, 2024.

For more information, please visit the Company’s website: ir.daviscl.com.

Forward-Looking Statements

This press release contains certain forward-looking statements, within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, relating to the fundraising plans of Davis Commodities Limited. These forward-looking statements generally can be identified by terms such as “believe,” “project,” “predict,” “budget,” “forecast,” “continue,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “could,” “should,” “will,” “would,” and similar expressions or negative versions of those expressions.

Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, therefore, subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements contained in this press release. The Company’s filings with the SEC identify and discuss other important risks and uncertainties that could cause events and results to differ materially from those indicated in these forward-looking statements.

Forward-looking statements speak only as of the date on which they are made. Readers are cautioned not to place undue reliance upon forward-looking statements. Davis Commodities Limited assumes no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, please contact:

Davis Commodities Limited

Investor Relations Department

Email: investors@daviscl.com

Celestia Investor Relations

Dave Leung

Email: investors@celestiair.com

FAQ

What is Davis Commodities' (DTCK) plan for Solana cryptocurrency?

Davis Commodities is evaluating a strategic reserve in Solana (SOL), considering a 5-10% allocation of excess treasury funds, subject to risk evaluation and compliance review.

How will DTCK use Solana in its business operations?

DTCK plans to explore using Solana for tokenized ESG-certified agricultural trade, carbon-credit-linked settlements, and stablecoin interoperability through infrastructure partnerships.

What are the advantages of Solana that attracted Davis Commodities?

Solana offers high throughput (~65,000 transactions per second), low transaction fees, and growing institutional adoption, including recent launches of Solana-linked ETFs.

How does the Solana initiative align with DTCK's business strategy?

The initiative aligns with DTCK's focus on digital innovation, treasury diversification, and enhancing transparency and efficiency in cross-border commodity flows, particularly in ESG-related operations.

What is the current status of DTCK's Solana implementation?

The initiative is in the early evaluation stage, with the company currently assessing feasibility, conducting risk evaluations, and engaging in preliminary discussions with infrastructure providers.