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

TechFlow news, July 24: According to Decrypt, the Fazenda Engenho Velho farm in Parana State, Brazil, used 10 cows as collateral to complete the first tokenized livestock financing transaction officially registered on the Brazilian Stock Exchange (B3), with a loan amount of 100,000 reais (approximately $19,400). Each cow collects health, behavior, and location data via AI sensor collars from agritech company Cowmed, generating a unique encrypted digital identity that is hashed into the credit contract, eliminating the need for on-site farm verification throughout the process.

This model aims to address the issue where banks generally apply discounts of up to 60% on livestock collateral. Regarding background, Brazilian agricultural bankruptcy applications reached 1,990 in 2025, nearly four times the 534 cases in 2023, as the agricultural credit crisis continues to intensify. Cowmed currently monitors over 100,000 dairy cows across six countries, expects to include 20% of them (worth approximately $77.6 million) in the tokenized collateral system within two years, and plans to leverage a credit scale of approximately $970,000 through this model by the end of 2026.