CNN Brasil reported that Brazil completed its first formal credit operation using tokenized dairy cows as collateral in a transaction registered with B3. Structured by Target FIDC, the R$100,000 loan turned livestock monitoring data into a capital-markets guarantee, linking physical animals to a digitally recorded financing contract.
Cowmed collars track each cow’s health, behavior and location in real time, creating an encrypted digital identity attached to the credit agreement. That structure allows lenders to verify the herd without recurring physical inspections and helps replace steep collateral discounts with continuously updated animal data, potentially improving producers’ access to working capital.
The model also prevents the same herd from backing multiple loans because each animal receives a unique code registered with B3. Operations include roughly 20% additional cattle so dead animals can be replaced digitally, while Cowmed currently monitors about 100,000 cows. The next test is whether a R$100,000 pilot can scale into routine agricultural credit, with potential adoption across a broader farm network.
Source: CNN Brasil.
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