Brazil puts tokenized cows to work as loan collateral: ReportTen tokenized dairy cows backed a $19,600 loan registered on Brazil’s B3, in one of Brazil’s first uses of tokenized livestock as loan collateral.
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In a novel financial development in Brazil, ten tokenized dairy cows were used to secure a loan worth 100,000 Brazilian reais (approximately $19,600) registered on Brazil’s B3 stock exchange. The livestock, belonging to Fazenda Engenho Velho in Paraná state, were valued at around 120,000 reais ($23,500). This arrangement marks one of the first instances in Brazil where tokenized livestock serve as collateral for a loan.
The deal was facilitated by the Brazilian investment fund Target FIDC and incorporates digital tokens that assign a unique encrypted identity to each cow. Additionally, the cattle are monitored using AI-powered smart collars provided by agriculture technology company Cowmed, which tracks the health of the animals and reduces the necessity for physical inspections.
This approach offers livestock farmers a new mechanism to access credit, using their animals as a tangible asset that can be digitally verified and managed. Cowmed currently oversees the health of approximately 100,000 dairy cows across 1,000 farms in Brazil, highlighting the scale of this technology’s application in the agricultural sector. Cointelegraph reached out to B3 for further comment on this transaction.