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Brazil’s first tokenized livestock collateral is registered on B3
The deal uses AI-sensor collars to assign each cow a blockchain ID, aiming to cut the 60% discounts banks apply to unverified livestock collateral.
A tokenized livestock financing deal in Brazil has been formally registered on B3, marking the first time dairy cows have been accepted as tokenized collateral on the country’s main stock exchange, according to Decrypt.
Fazenda Engenho Velho in Imbituva, Paraná used ten cows, valued at R$120,000 (about $23,310), to back a R$100,000 CPR-F rural credit certificate. The CPR-F, which allows farmers to borrow against livestock or crops, was provided through BMP, a central bank-authorized direct credit company, and the credit rights were then sold to Target FIDC, which registered the transaction on B3.
Each cow received a unique encrypted digital ID generated from AI-sensor collar data collected by Cowmed, an agricultural tech startup that monitors dairy herds. The system hashes health, behavioral, and location data into a tamper-resistant identifier tied to the credit contract, reducing the need for in-person inspections.
The reporting notes that banks routinely discount livestock collateral by as much as 60% because lenders lack reliable ways to track an animal’s condition. Target FIDC director Humberto Brenner said monitoring reduces that uncertainty and highlighted rising demand for real collateral and new information, as Brazil’s agribusiness bankruptcy protection requests rose to 1,990 in 2025, up from 534 filed in 2023, according to Serasa Experian.