Brazil's B3 registers first tokenized cows as farm credit tightens
Ten blockchain-tracked cows have become the first livestock collateral registered on Brazil's stock exchange, offering a potential lifeline to a farming sector drowning in bankruptcy filings.
Ten dairy cows in Paraná have become the first livestock formally registered as collateral on B3, Brazil’s stock exchange, using blockchain tracking to bypass traditional banking discounts. The animals, fitted with AI-powered sensor collars, secured a R$100,000 ($19,420) rural credit certificate for Fazenda Engenho Velho.
Central bank-authorized lender BMP issued the Cédula de Produto Rural Financeira against the herd, which carries a total valuation of R$120,000 (around $23,310). BMP subsequently sold these credit rights to Target FIDC, a fund that purchases and monetizes receivables. Target FIDC then completed the formal registration of the tokenized assets on the exchange.
The transaction targets a persistent friction in agricultural lending. Lenders routinely apply haircuts of up to 60% on livestock collateral because they cannot easily verify an animal's health or confirm it is still alive. A cow worth R$20,000 ($2,380) on paper typically secures only R$8,000 ($1,600) in actual financing.
Agricultural technology startup Cowmed generated unique, encrypted digital IDs for the animals by cryptographically hashing real-time health, location, and behavioral data from the smart collars. This tamper-resistant identifier is tied directly to the credit contract, removing the need for physical farm inspections. "With monitoring, that uncertainty is eliminated," said Humberto Brenner, a director at Target FIDC.
The innovation arrives as Brazil's agricultural sector faces a severe credit emergency. Agribusiness bankruptcy protection requests reached 1,990 in 2025, nearly quadrupling from 534 in 2023, according to data from Serasa Experian. High interest rates, falling commodity prices, and climate shocks have severely squeezed farmer liquidity.
As traditional lenders pull back, the market is shifting toward verifiable assets. "Banks will increasingly demand real collateral and new information," Brenner noted. Cowmed CEO Thiago Martins framed the B3 registration as a crucial expansion of financing options.
"We took the cow, a real and tangible asset, and transformed it into a digital asset backed by a unique code monitored in real time," Martins told CNN Brazil. "This digitalization allows formal registration on B3 as a financial security—the process gives the farmer an advantageous opportunity to get financing, opening a new collateral alternative at a time of strong credit restrictions in agribusiness."
