Fazenda Engenho Velho, a dairy farm located in Imbituva, Paraná, has secured Brazil’s first tokenized livestock loan registered on B3, the country’s primary stock exchange. The farm tokenized ten dairy cows to back a R$100,000 (approximately $19,400) loan issued by BMP Sociedade de Crédito Direto and assigned to Target FIDC via a tokenized rural credit note (CPR-F).
While livestock has served as bank collateral for centuries, traditional underwriting typically applies steep discounts due to verification challenges, animal health risks, and physical inspection costs. To overcome these hurdles, agtech firm Cowmed equipped each cow with an AI-powered sensor collar. These devices generate a blockchain-secured digital identity for each animal, providing real-time telemetry on health, physical location, behavior, and rumination metrics.
The continuous health data streams allowed lenders to accept a tight 120% collateralization ratio (R$120,000 in total herd value against the R$100,000 principal). By replacing periodic physical inspections with live data feeds, continuous monitoring mitigates downside risk for credit providers.
Expanding RWA Tokenization on B3 Exchange
The transaction aligns with B3’s broader initiative to launch its proprietary tokenization infrastructure and stablecoin payment rails in 2026. Accepting tokenized agricultural collateral marks a key step in moving real-world asset (RWA) tokenization beyond standard US Treasuries and commercial real estate into dynamic agricultural commodities.
Cowmed currently monitors over 100,000 cows globally, representing an estimated aggregate herd value of R$2 billion. The company projects facilitating R$5 million in credit through similar livestock-backed transactions this year, with plans to scale credit volume to R$400 million by 2028 as tokenized agricultural finance matures.
