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Brazil uses tokenized dairy cows as loan collateral on B3
A loan for 100,000 Brazilian reais, or about $19,600, was secured by 10 tokenized cows, with smart collars and AI monitoring animal health to support the collateral arrangement.
Brazil has reportedly backed a loan with tokenized livestock, marking one of the first uses of tokenized cattle as loan collateral on the B3 stock exchange, according to Cointelegraph.
The transaction involved a 100,000 Brazilian reais loan, about $19,600, secured by 10 dairy cows from Fazenda Engenho Velho in Paraná. The cows were valued at roughly 120,000 Brazilian reais, about $23,500, and the deal was structured by Brazilian investment fund Target FIDC, the outlet reported.
Each cow was assigned a unique digital token tied to an encrypted digital identity. Cowmed’s AI-powered smart collars monitor each animal’s health, reducing the need for physical inspections, Cointelegraph said.
Cointelegraph also reported that the approach aims to expand credit access for livestock farmers using cattle as collateral, and that Cowmed currently monitors about 100,000 dairy cows across 1,000 Brazilian farms.