Brazilian Dairy Cows Tokenized as Collateral on B3 Exchange
Ten cows in Paraná were used as collateral for nearly $20,000 in credit after their health and location data were tokenized via Cowmed collars.
Ten dairy cows in Paraná, Brazil, have been tokenized on the B3 stock exchange using encrypted identity collars developed by Cowmed. The collars capture each animal's health, behavior, and location data, converting them into digital assets that served as loan collateral.
The tokenized cows backed nearly $20,000 in credit, marking a pilot for a system designed to reduce lender haircuts and prevent double pledging of assets. The initiative aims to bridge an estimated $8 trillion global financing gap for smallholders and agricultural businesses.
How the System Works
Cowmed's collars create a biometric and behavioral profile for each cow, which is then recorded on a blockchain via B3's infrastructure. Lenders can verify ownership and asset quality in real time, lowering risk and unlocking credit for farmers who lack traditional collateral.
- Encrypted identity collars track health, behavior, and location.
- Data is tokenized and registered on B3, Brazil's main exchange.
- Collateral value is based on verified, immutable data.
The concept could be expanded to other agricultural assets, offering a scalable solution for rural credit markets. The pilot's success may encourage wider adoption of tokenized real-world assets in emerging economies.