Brazil's Cowmed registers 10 cows as collateral on B3, no blockchain or crypto token involved

Published Jul 29, 02:15 PM UTC

A Brazilian agritech firm, Cowmed, partnered with financial institutions to use ten dairy cows as collateral for a R$100,000 loan, registered on B3, Brazil's main stock exchange. The cows are monitored via encrypted digital identities from sensor collars, enabling real-time verification of the animals' health and location. Despite being widely reported as a 'tokenized cow' breakthrough, the article clarifies that no blockchain, tradable token, or crypto wallet is involved. The transaction uses a traditional Brazilian rural credit note (CPR-F) and conventional exchange infrastructure. The innovation lies in the verified data from collars, which reduces lender risk by preventing double pledging and allowing live animal swaps. Cowmed monitors about 100,000 dairy cows, and the partners project up to R$400 million in herd-backed credit if 20% of that network adopts the model. The article questions whether the 'tokenization' label is justified, noting that similar livestock collateral registries exist elsewhere, such as Mongolia's web-based system.