A dairy farm in southern Brazil just secured a loan using ten cows as collateral. Not in the old-fashioned “bring the cattle to the bank” sense, but through blockchain-based digital identities that track each animal in real time.
Fazenda Engenho Velho, a farm in Imbituva, Paraná, tokenized ten of its dairy cows to back a R$100,000 (roughly $19,400) loan, making it the first instance of tokenized livestock collateral accepted on Brazil’s B3 stock exchange. The transaction was originated by BMP Sociedade de Crédito Direto and assigned to Target FIDC, using a tokenized financial instrument known as CPR-F.
How do you tokenize a cow, exactly
Livestock has been used as loan collateral for centuries. The problem was always verification. How do you prove a cow is healthy, where it is, and what it’s actually worth without sending someone to physically inspect the herd? Traditional valuation methods typically slap substantial discounts on livestock collateral because of this uncertainty.
Cowmed, a livestock monitoring company, solved this with AI-powered sensor collars. Each collar generates an individual blockchain-secured digital ID for the animal, capturing real-time data on health, behavior, location, and even rumination patterns.
