Brazil first time uses dairy cows as collateral for B3 credit transactions

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Crypto Wire News: Brazil has registered a rural loan worth 100k reais (about $19,600), using 10 digitally identified cows as collateral, becoming the country’s first formal credit transaction to use tokenized livestock as collateral. Fazenda Engenho Velho pledged animals worth 120k reais (about $23,500). Target FIDC structured the deal and registered it through Brazil’s B3 system. BMP Sociedade de Crédito Direto provided the funding, using the CPR-F financial rural product promissory note. Each cow received a unique crypto identity, recording its health, behavior, and location, reducing reliance on on-site inspections. This loan model shows the animals are alive and that their condition matches their value, lowering the lender’s discount-risk. The structure also prevents one animal from supporting multiple loans; if an animal dies, another cow can be used as a replacement.
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