Brazil tokenizes cows as collateral in first B3 credit deal

Brazil has registered a R$100,000 ($19,600) rural loan backed by 10 digitally identified dairy cows, creating one of the country’s first formal credit transactions using tokenized livestock as collateral. Summary Ten tokenized cows valued at R$120,000 secured a R$100,000 rural credit note registered on B3. Cowmed’s smart collars track health, behavior and location, reducing lenders’ dependence on physical farm inspections. Target FIDC expects monitored livestock to improve collateral values while preventing duplicate pledges between lenders. Fazenda Engenho Velho, in Imbituva, Paraná, pledged animals valued at R$120,000 ($23,500). Target FIDC structured the transaction and registered it through Brazil’s B3 systems. BMP Sociedade de Crédito Direto provided the funds through a financial Rural Product Note, known locally as a CPR-F. BMP later transferred the credit rights to Target FIDC. Each cow received a unique encrypted identity linked to data collected by Cowmed’s smart collars. The system records health, behavior and location information, allowing the lender to follow the collateral without relying only on scheduled inspections. How the tokenized cattle loan works A CPR-F allows...