According to Decrypt, Fazenda Engenho Velho, a farm in Paraná State, Brazil, completed the first tokenized livestock financing transaction officially registered on the B3 Stock Exchange, securing a loan of R$100,000 (approximately $19,400) backed by 10 dairy cows. Each cow’s health, behavior, and location data are collected via AI-enabled smart collars from agritech company Cowmed, generating a unique encrypted digital identity that is hashed into the loan agreement—eliminating the need for on-site farm inspections. This model aims to address the widespread banking practice of applying up to 60% discounts on livestock collateral. The context reflects a deepening agricultural credit crisis: agricultural bankruptcy filings in Brazil rose nearly fourfold from 534 in 2023 to 1,990 in 2025. Cowmed currently monitors over 100,000 dairy cows across six countries and expects to tokenize 20% of them—approximately $77.6 million worth—within two years, with plans to unlock around $970,000 in credit volume via this model by the end of 2026.
Brazilian Cows Tokenized for First-Time Financing on B3 Exchange
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Summary
On-chain news emerges from Brazil as a farm in Paraná secures a 100,000 BRL loan using tokenized cattle as collateral on the B3 exchange. Each cow is assigned a unique digital identity through Cowmed’s AI sensors, with data secured via hash functions in credit contracts. The initiative aims to overcome the typical 60% collateral discount applied by banks to livestock. Brazil recorded 1,990 agricultural bankruptcies in 2025, a sharp increase from 2023. Cowmed currently monitors 100,000 cattle across six countries and plans to tokenize 20%, targeting $970,000 in unlocked credit by late 2026. This represents a significant milestone in agri-finance innovation on a major exchange.
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