Brazil First to Tokenize Livestock for Loan Collateral
A Brazilian dairy farm has successfully secured a $19,400 loan using ten tokenized cows as collateral. The transaction was facilitated by BMP Sociedade de Crédito Direto and assigned to Target FIDC through B3's blockchain-based platform.
The cows were valued at R$120,000 against the R$100,000 loan, providing a collateralization ratio of 1.2, or a 20% cushion above the loan value.
This achievement marks the first instance of tokenized livestock collateral accepted on B3's stock exchange and is made possible by Cowmed's AI-powered sensor collars that generate digital IDs for each animal, tracking their health, location, and behavior in real-time.