Brazil Registers First Tokenized Cattle Collateral on B3

Ten dairy cows at Fazenda Engenho Velho in Imbituva, Paraná, were assigned unique blockchain identifiers derived from AI‑sensor collar data and used as collateral to register a R$100,000 CPR‑F on B3, Brazil’s main stock exchange. The animals were valued at R$120,000 and the loan originated with BMP before the credit rights were transferred to Target FIDC for registration on the exchange.

The collars, provided by ag‑tech firm Cowmed, collect health, behavior and location data for each animal. Those data points are cryptographically hashed to create a tamper‑resistant digital identifier that is linked to the credit contract. The registration removed the need for a traditional in‑person farm inspection to verify the livestock used as collateral.

Banks typically apply steep discounts when livestock serve as collateral because they cannot reliably confirm an animal’s condition or location; lenders can reduce a cow’s loan value by as much as 60 percent. Humberto Brenner, director at Target FIDC, noted: “With monitoring, that uncertainty is eliminated,” and said lenders will demand more reliable collateral and new sources of information.

BMP, a central bank‑authorized direct credit company, originated the R$100,000 loan and transferred the receivables to Target FIDC, which completed the formal registration on B3. Four additional Brazilian farms are under evaluation for similar registrations, and the partners aim to provide about R$5 million in credit through tokenized livestock by the end of 2026.

Cowmed currently monitors roughly 100,000 cows across 1,200 farms in Brazil and other countries, a herd the company estimates at about R$2 billion in value. Cowmed CEO Thiago Martins described the operation: “We took the cow, a real and tangible asset, and transformed it into a digital asset backed by a unique code monitored in real time.” He estimated that 20 percent of the monitored herd, about R$400 million in value, could be pledged as tokenized collateral within two years.

The cattle registration follows a rise in credit stress across Brazil’s agribusiness sector. Requests for judicial recovery reached 1,990 in 2025, up from 534 in 2023, driven by high interest rates, lower commodity prices and climate impacts.

The transaction joins a broader activity in financial markets to convert physical assets into digital securities. By attaching live animal data to a financial contract and registering the credit on a regulated exchange, lenders gain a formal mechanism to accept livestock as collateral and producers gain an additional route to financing.