Brazil Uses Tokenized Dairy Cows as Collateral to Expand Farm Lending

• Brazil’s first tokenized dairy cow loan could improve farmers’ access to credit through digital collateral.
• AI-powered collars let lenders monitor livestock in real time, reducing risks tied to farm-backed loans.
• B3’s pilot reflects the growing role of tokenization as traditional assets move onto blockchain-based platforms.

Brazilian farmers are using tokenized dairy cows as collateral for loans as access to agricultural credit becomes more difficult. In a pilot project in the southern state of Paraná, a farmer used 10 tokenized Holstein cows to back a 100,000-real ($20,000) loan. The transaction marked the first time livestock-backed collateral was registered on B3, Brazil’s main stock exchange and financial market infrastructure provider.

The cows were valued at about 120,000 reais, providing collateral worth more than the 100,000-real loan. Cowmed and Target FI…

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