Crypto
Home›Crypto›Market Structure›Brazil pilots tokenized livestock identities as loan c…
Brazil pilots tokenized livestock identities as loan collateral at B3
The cow-based records are designed to reduce lender haircuts and prevent the same animal from being pledged twice, with the initial pilot tied to nearly $20,000 in credit per animal set.
CryptoSlate reports that ten dairy cows in Paraná, Brazil, carried encrypted digital identities built from their health, behavior, and location data into B3 this week via Cowmed collars.
The identities are being used as collateral to unlock nearly $20,000 in credit, and the underlying record aims to shrink the haircut lenders apply while stopping lenders from pledging the same animal twice.
Beyond the small-scale proof in Brazil, the article frames the effort as a way to bridge a much larger global credit shortfall, citing a $5.7 trillion financing gap for small businesses that rises to $8 trillion once informal enterprises are included.
It also points to regional need and readiness, noting the African Development Bank estimate that credit access for African smallholder farmers is about 6%, and highlighting Ethiopia and Nigeria as cases where livestock registries, identification systems, and financing programs exist but are not yet fully connected into one loan process.