Latin America Sees Tokenized Cows and Crypto Doldrums

A Brazilian farm has successfully secured a $20,000 loan using tokenized cows as collateral. The Engendro Velho farm in Paraná received a Financial Rural Product Note (CPR-F) valued at nearly $100,000 from BMP, a direct credit society.

The deliverables - the 10 cows themselves - were assigned to Target FIDC, a fintech company that registered the transaction using each animal's data. This tokenization and monitoring of the cows enables farmers to get a better deal, as creditors can examine the status of the herd at any time.

Humberto Brenner, a director at Target FIDC, stated that this element can lead to a cow reaching up to 2.5 times the price it would have in similar non-monitored agreements.