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Davis Commodities Evaluates Real Yield Tokenization to Enhance $500M Trade Pipeline by 2028
Globenewswire· 2025-08-19 15:59
Core Insights - Davis Commodities Limited is exploring Real Yield Tokenization (RYT) to digitize commodity finance and enhance ESG-aligned capital flows [1][2] - The RYT model aims to create tokenized representations of physical agri-trade flows, including rice, sugar, and oil & fat exports [2][3] - The initiative aligns with the recently passed GENIUS Act in the U.S., which provides regulatory clarity on fiat- and yield-backed tokens [4] Group 1: RYT Implementation and Benefits - RYT could integrate with Davis Commodities' broader initiatives, potentially creating a programmable finance infrastructure that aligns physical trade with tokenized liquidity and ESG compliance [3] - The company anticipates that tokenized trade flows could represent USD 500–700 million across Asia, Africa, and the Middle East by 2028, subject to market validation [7] - Stablecoin settlement is projected to support USD 200–250 million in annual transaction volume by 2027, significantly reducing cross-border settlement time by over 90% [7] Group 2: Executive Insights and Future Steps - The Executive Chairwoman emphasized the evolution of commodity finance towards programmable and compliant ecosystems, highlighting the vision of connecting agricultural supply chains with digital capital [5] - While no token issuance has been initiated, the company is consulting with blockchain infrastructure providers and financial institutions to explore potential pilot projects within the next two to three quarters [5][8] - The company is also considering integrating ESG certifications into future yield-bearing token models [4]