Brazilian dairy cows go on-chain for the first time: farmers complete financing on the B3 exchange by using tokenized livestock as collateral

DeepChao TechFlow news. On July 24, according to Decrypt, the Fazenda Engenho Velho farm in Brazil’s state of Paraná completed the first tokenized livestock financing transaction that is officially registered on the Brazilian Securities Exchange (B3), using 10 dairy cows as collateral. The loan amount is 100k reais (about 19.4k USD). For each cow, health, behavior, and location data are collected via AI sensor collars provided by agricultural technology company Cowmed, generating a unique encrypted digital identity, which is written into the credit contract in hashed form, with no need for on-site farm verification throughout the entire process.

This model aims to address the problem that banks commonly discount livestock collateral by as much as 60%. In terms of the broader backdrop, Brazil filed 1,990 agricultural bankruptcy applications in 2025, nearly four times the 534 cases in 2023, as the agricultural credit crisis continues to worsen. Cowmed currently monitors more than 100k cows across six countries. It expects to bring 20% of them (about 77.6 million USD) into a tokenized collateral system within two years and plans to leverage roughly 970k USD in credit scale by the end of 2026 through this model.