Brazilian Farmers Are Tokenizing Cows to Get Farm Loans—And It's Working
Ten cows in Paraná, Brazil, became the first livestock collateral formally registered on B3, Brazil’s stock exchange. Fazenda Engenho Velho used the animals, valued at R$120,000, to secure a R$100,000 CPR-F loan from BMP, which then sold the receivables to Target FIDC. The cows were tokenized through Cowmed’s AI collars, which track health, behavior, and location and generate encrypted digital IDs tied to the credit contract, reducing the need for farm inspections. The model aims to solve a major lending problem: livestock is often heavily discounted as collateral because lenders cannot reliably verify an animal’s condition or survival. That matters as Brazilian agribusiness faces a credit squeeze, with bankruptcy protection filings rising sharply in 2025 amid high interest rates, weak commodity prices, and climate shocks. Cowmed now monitors 100,000 cows and expects broader use of tokenized livestock collateral soon.
