Brazil registers first tokenized livestock collateral on B3 in R$100,000 farm credit deal

Brazil has registered a R$100,000 rural loan backed by 10 digitally identified dairy cows, in one of the country’s first formal credit transactions using tokenized livestock as collateral. The animals from Fazenda Engenho Velho in Imbituva, Paraná, were valued at R$120,000 and pledged through a financial Rural Product Note, or CPR-F, registered in B3’s systems. BMP Sociedade de Crédito Direto provided the funds and later transferred the credit rights to Target FIDC, which structured the transaction. Each cow received a unique encrypted identity linked to data from Cowmed’s smart collars, which track health, behavior and location to reduce reliance on repeated physical inspections and help prevent the same animal from being pledged to multiple lenders. Target FIDC director Humberto Brenner said lenders have historically applied steep discounts to cattle because of limited visibility into their condition and whereabouts, citing an example in which a cow worth R$20,000 might receive a collateral value of only R$8,000. The structure includes about 20% extra animals as a buffer and allows digital replacement if an animal dies. The deal adds to Brazil’s broader push into real-world asset tokenization as B3 develops digital infrastructure for agricultural credit and other tokenized assets. Target FIDC is assessing four more producers and aims to arrange R$5 million in loans through the model by the end of 2026, while Cowmed said part of a monitoring base of roughly 100,000 dairy cows valued at more than R$2 billion could eventually support about R$400 million in credit if adoption expands.