Brazilian farmers tokenize cattle as collateral for farm loans on B3 exchange

Published Jul 23, 05:31 PM UTC

Brazilian farmers have successfully tokenized livestock to secure farm loans, marking the first time cattle collateral has been formally registered on Brazil's B3 stock exchange. Fazenda Engenho Velho in Paraná used ten cows valued at R$120,000 to secure a R$100,000 rural credit certificate from BMP, a central bank-authorized lender. The cows were fitted with AI-powered sensor collars from agritech firm Cowmed, which generate unique encrypted digital IDs based on health, behavioral, and location data. This eliminates the need for physical farm inspections and reduces the typical 60% discount banks apply to livestock collateral. The credit rights were sold to Target FIDC and registered on B3. The innovation comes amid a severe agribusiness credit crisis in Brazil, where bankruptcy protection filings surged to 1,990 in 2025. Cowmed currently monitors 100,000 cows across 1,200 farms in six countries, and projects R$400 million in tokenized collateral within two years.