Brazilian farmers tokenize dairy cows on B3 exchange to bypass bank lending limits

Published Jul 25, 04:40 AM UTC

Farmers in Parana, Brazil, struggling with tight bank lending, have tokenized 10 dairy cows and listed them on the B3 national stock exchange, generating nearly $20,000 in credit. This world-first initiative, led by Agtech firm Cowmed, uses AI-powered 'Smarty Collars' to monitor cattle health, behavior, and location in real time, creating encrypted digital identities tied to credit agreements. The system prevents double-pledging and allows swapping dead cows for live ones. Cowmed already tracks 100,000 dairy cows worth over $395 million across 1,000 farms, and expects up to 20% of its network to adopt the model, unlocking $77.6 million in fresh agricultural credit. The move signals the potential of tokenizing real-world assets (RWAs) as an alternative financing tool for small farmers facing credit restrictions.