A Brazilian dairy farm secured a $19,420 loan using ten tokenized cows as collateral, registered on the country’s stock exchange.
A Paraná dairy farm became the first to register livestock as collateral on Brazil’s B3 stock exchange, using ten cows valued at $23,310 to secure a $19,420 loan. The animals were tokenized via blockchain, with AI-powered collars tracking health and location data to generate tamper-resistant digital IDs.
Traditional lenders often discount livestock collateral by up to 60% due to tracking challenges. A cow worth $2,380 may be valued at just $1,600 for loans, limiting farmers’ access to credit. This pilot aims to reduce such discounts by providing verifiable, real-time data.
The loan was structured as a CPR-F, Brazil’s rural credit certificate, and sold to a fund specializing in receivables. The deal marks a test for tokenizing physical assets to improve agricultural financing.