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Brazilian farmers tokenize dairy cows to raise credit on B3
The Cowmed-led pilot converted 10 cattle into tokenized collateral, generating nearly $20,000 in loans amid tighter bank lending for small agribusinesses.
CoinDesk reports that farmers in Paraná, Brazil, have tokenized 10 dairy cows on the B3 stock exchange to secure credit backed by livestock as local banks tighten lending limits for small agricultural businesses. The project, led by agtech firm Cowmed, generated nearly $20,000 in credit tied to the cattle, signaling a financing use case for real-world asset tokenization.
Cowmed’s approach uses AI-powered tracking collars that create encrypted digital identities for each cow. The system is designed to help prevent double-pledging by tying each animal to a unique code, with health, behavior, and location monitored continuously.
According to CoinDesk, Cowmed already monitors about 100,000 cows worth more than $395 million and expects up to 20% of its network to adopt this tokenized financing model. The company projects the rollout could unlock $77.6 million in new agricultural credit as it expands its real-world asset tokenization efforts.
Cowmed said the digitization allows for formal registration with B3 as a movable asset, using the collar data to reduce the need for in-person inspection. The firm also framed the setup as a new collateral alternative for producers facing stronger credit restrictions in agribusiness.