Crypto▲ Bullish
Brazilian farmers tokenize dairy cows for loans on B3 exchange
Tokenized dairy cows on Brazil's B3 exchange unlocked nearly $20,000 in credit for farmers facing tight bank lending limits. Cowmed expects $77.6 million in fresh agricultural credit as 20% of its network adopts the model.
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Farmers in Parana, Brazil, tokenized 10 dairy cows and placed them for trade on the country's B3 national stock exchange, generating nearly $20,000 in credit backed by their cattle. The move, which Cowmed called a world first, lets small agricultural businesses bypass tightening bank lending limits.
Cowmed, a Brazilian Agtec company, equips the cows with an AI-powered Smarty Collar that monitors health, behavior, and location. The raw data converts into an encrypted digital identity tied directly to a B3 credit agreement. Continuous tracking prevents farmers from double-pledging the same cattle across multiple loans, and allows a farmer to swap a dead cow for a live one under built-in safeguards.
"We take the cow, which is a real and tangible asset, and transform it into a digital asset backed by a unique code monitored in real time," Thiago Martins of Cowmed told CNNBrasil. "This digitization allows for formal registration with B3 as a movable asset. The process is simple and gives the producer an advantageous opportunity to finance themselves, opening a new alternative for collateral at a time of strong credit restrictions in agribusiness."