Brazil Tokenizes Cows for Farm Loans in Blockchain Breakthrough

Brazil has made history by allowing tokenized dairy cows to be used as collateral for farm loans, marking a significant milestone in blockchain adoption in rural finance.

The country's first livestock-backed loan was issued through a transaction registered on the B3 stock exchange, with Fazenda Engenho Velho securing a R$100,000 loan using 10 dairy cows valued at R$120,000 as collateral.

The unique digital identity and AI-powered smart collars developed by Cowmed enable lenders to remotely monitor the health and location of the livestock, reducing collateral valuation risks and improving rural credit access.

This innovative model combines artificial intelligence, digital identities, and real-time monitoring, making it easier for farmers to secure financing while giving lenders greater confidence in collateral valuations.