Brazil farmer gets $19,600 loan backed by tokenized cows on B3

Ten dairy cows with digital tokens and AI-powered collars secured a loan on Brazil's B3 stock exchange, in what appears to be one of the first uses of tokenized livestock as collateral.

The loan of 100,000 Brazilian reais ($19,600) was backed by 10 cows from Fazenda Engenho Velho in Paraná state, valued at about 120,000 reais ($23,500). Brazilian investment fund Target FIDC structured the deal, CNN Brasil reported.

Each cow received a unique digital token linked to an encrypted identity. Agricultural tech company Cowmed provides AI-powered smart collars that monitor each animal's health, cutting the need for physical inspections. Cowmed said it currently monitors roughly 100,000 dairy cows across 1,000 Brazilian farms.

The transaction gives livestock farmers a new way to tap credit by using cattle as collateral on B3, Brazil's main exchange. Cointelegraph has approached B3 for comment.