Brazilian farmers tokenized dairy cows to get loans, bypassing bank lending limits

Farmers successful Parana, Brazil, struggling to get banks to indebtedness them cash, became the archetypal to tokenize livestock and spot 10 dairy beverage cows’ tokens for commercialized connected the country’s B3 nationalist banal exchange. They generated astir $20,000 successful recognition backed by their cattle, signaling the imaginable of tokenizing RWAs arsenic a financing tool.

The dairy cattle tokenization successful Brazil is simply a satellite archetypal and serves arsenic a trial successful a real-world script successful which farmers are facing progressively stringent lending limits imposed by section banks connected tiny cultivation businesses.

"We instrumentality the cow, which is simply a existent and tangible asset, and alteration it into a integer plus backed by a unsocial codification monitored successful existent time,” Thiago Martins of Cowmed, a Brazilian Agtec company, told CNNBrasil recently.

Martins and his institution did not instantly respond to a CoinDesk petition for comment.

“This digitization allows for ceremonial registration with B3 arsenic a movable asset,” Martins added. “The process is elemental and gives the shaper an advantageous accidental to concern themselves, opening a caller alternate for collateral astatine a clip of beardown recognition restrictions successful agribusiness."

To crook cattle into trusted fiscal guarantees oregon collateral without requiring inspectors to sojourn the property, Cowmed equips cows with an AI-powered Smarty Collar. These collars perpetually show health, behavior, and location. The earthy information is past converted into an encrypted integer individuality tied straight to the B3 recognition agreement.

Continuous tracking of cattle prevents farmers from double-pledging the aforesaid cattle crossed aggregate loans. It besides includes built-in safeguards that let the husbandman to swap 1 dormant cattle for a unrecorded one.

Cowmed already tracks astir 100,000 dairy cows crossed much than 1,000 farms. The herd is worthy implicit $395 million. The institution expects up to 20% of its web to follow this tokenized financing model, unlocking $77.6 cardinal successful caller recognition for the cultivation sector.

McKinsey & Company forecasts marketplace of tokenized assets to turn to astir $4 trillion by 2030, and Standard Chartered projected $30 trillion by 2034. As of March 2026, however, the full worth of tokenized assets stood astatine $25 billion.