Brazilian Dairy Cows Go On-Chain for First Time: Farmers Complete Financing on B3 Exchange Using Tokenized Livestock as Collateral

According to Decrypt, the Fazenda Engenho Velho farm in Parana, Brazil, has completed the first tokenized livestock financing transaction officially registered on the Brazilian Stock Exchange (B3), using 10 cows as collateral, with a loan amount of 100,000 reais (approximately $19,400). Each cow collects health, behavior, and location data via AI sensor collars from agricultural technology company Cowmed, generating a unique encrypted digital identity that is written into the credit contract via hash, eliminating the need for physical farm verification throughout the process. This model aims to address the issue where banks typically discount livestock collateral by up to 60%. In terms of background, Brazilian agricultural bankruptcy applications reached 1,990 cases in 2025, a nearly fourfold increase from 534 cases in 2023, as the agricultural credit crisis continues to intensify. Cowmed currently monitors over 100,000 cows across six countries and expects to incorporate 20% of them (approximately $77.6 million) into the tokenized collateral system within two years, and plans to leverage a credit volume of approximately $970,000 through this model by the end of 2026.