Brazilian Farmer Tokenizes Dairy Cows to Secure Loan

Brazil’s dairy farmers have struggled to turn herds into usable collateral because lenders cannot continuously verify an animal’s health, location or survival, prompting banks to apply discounts of as much as 60% to livestock values. Cowmed’s AI-powered smart collars track health, behavior and location, then convert the data into an encrypted digital identity linked to a credit contract. The model gives a traceable real-world asset, or RWA, a place in Brazil’s regulated rural-credit system while reducing inspections, duplicate pledging and risk for lenders.

CNN Brasil reported on July 21, 2026, that Fazenda Engenho Velho in Imbituva, Paraná, pledged 10 dairy cows valued at 120,000 reais ($23,300) to secure a 100,000-real ($19,400) CPR-F rural credit loan from BMP, a direct lender authorized by Brazil’s central bank. BMP sold the credit rights to Target FIDC, which registered the transaction on B3. It was Brazil’s first formal B3-registered loan backed by tokenized live cattle; Target is evaluating four more farmers and aims for 5 million reais in such credit by end-2026.