Brazilian farmers tokenize dairy cows on national stock exchange
8 reported
Farmers in Parana, Brazil, facing difficulty obtaining bank loans, have tokenized livestock and placed 10 dairy milk cows’ tokens for trade on the country’s B3 national stock exchange, generating nearly $20,000 in credit backed by their cattle. This dairy cow tokenization is reported as a world first and serves as a test in a scenario where local banks are imposing increasingly stringent lending limits on small agricultural businesses. Thiago Martins of Cowmed, a Brazilian Agtec company, told CNNBrasil that the process transforms a real and tangible asset into a digital asset backed by a unique code monitored in real time. The digitization allows for formal registration with B3 as a movable asset, providing farmers an alternative for collateral amid strong credit restrictions in agribusiness. To enable this, Cowmed equips cows with an AI-powered Smarty Collar that constantly monitors health, behavior, and location, converting raw data into an encrypted digital identity tied to the B3 credit agreement. Continuous tracking prevents double-pledging of cattle and includes safeguards allowing farmers to swap a dead cow for a live one. Cowmed currently tracks about 100,000 dairy cows across more than 1,000 farms, with the herd valued at over $395 million, and expects up to 20% of its network to adopt this model, unlocking $77.6 million in fresh credit for the agricultural sector.
What’s reported
Farmers in Parana, Brazil, tokenized 10 dairy milk cows and placed their tokens for trade on the B3 national stock exchange.
The tokenization generated nearly $20,000 in credit backed by the cattle.
The dairy cow tokenization is reported as a world first.
Thiago Martins of Cowmed described the process to CNNBrasil.
Cowmed equips cows with an AI-powered Smarty Collar for continuous monitoring.
The collars prevent double-pledging and allow swapping a dead cow for a live one.
Cowmed tracks about 100,000 dairy cows across more than 1,000 farms, worth over $395 million.
Cowmed expects up to 20% of its network to adopt the model, unlocking $77.6 million in credit.
Key figures
Thiago Martins, of Cowmed, a Brazilian Agtec company
Sources: marginalrevolution.com
