Brazil executes first farm loan using tokenized cows as collateral, registered on B3

Published Jul 24, 07:40 PM UTC

Brazil has executed its first formal credit operation using tokenized dairy cows as collateral, registered with the Brazilian stock exchange (B3). The transaction, structured by Target FIDC, involved R$ 100,000 and leveraged data from agricultural tech company Cowmed. Each cow is fitted with a smart device that monitors health, behavior, and location, creating a unique encrypted digital identity. This digital token is then used as collateral for loans, eliminating the need for physical inspections. Cowmed CEO Thiago Martins said the process gives producers a new financing alternative amid credit restrictions. The article contrasts this with traditional US farm lending, where livestock is used as collateral but without blockchain-based tokenization. The system prevents double-collateralization as each cow has a unique code. While lenders apply large discounts to livestock value due to uncertainties, continuous monitoring helps reflect true market value.