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

Brazilian farmers tokenized dairy cows to get loans, bypassing bank lending limitsSmart collars monitor herd health in real time to prevent fraud, allowing local agricultural businesses to secure thousands in funding backed by livestock.Brazilian Agtech firm Cowmed tokenized 10 dairy cows, proving that putting real-world assets onchain is a great way to bring liquidity to businesses facing challenges getting banks to loan them money. (Annie Spratt/Unsplash)Farmers in Paraná, Brazil, have tokenized 10 dairy cows on the B3 stock exchange, raising nearly $20,000 in credit backed by their livestock amid tighter bank lending.The project, led by agtech firm Cowmed, uses AI-powered tracking collars to create encrypted digital identities for each cow, preventing double-pledging and enabling cows to serve as movable collateral.Cowmed, which already monitors about 100,000 cows worth more than $395 million, expects up to 20% of its network to adopt this tokenized financing model, potentially unlocking $77.6 million in new agricultural credit as part of a broader push into real-world asset tokenization.Farmers in Parana, Brazil, struggling to get banks to loan them cash, became the first to tokenize livestock and place 10 dairy milk cows’ tokens for trade on the country’s B3 national stock exchange. They generated nearly $20,000 in credit backed by their cattle, signaling the potential of tokenizing RWAs as a financing tool.The dairy cow tokenization in Brazil is a world first and serves as a test in a real-world scenario in which farmers are facing increasingly stringent lending limits imposed by local banks on small agricultural businesses."We take the cow, which is a real and tangible asset, and transform it into a digital asset backed by a unique code monitored in real time,” Thiago Martins of Cowmed, a Brazilian Agtec company, told CNNBrasil recently.Martins and his company did not immediately respond to a CoinDesk request for comment.“This digitization allows for formal registration with B3 as a movable asset,” Martins added. “The process is simple and gives the producer an advantageous opportunity to finance themselves, opening a new alternative for collateral at a time of strong credit restrictions in agribusiness."To turn cattle into trusted financial guarantees or collateral without requiring inspectors to visit the property, Cowmed equips cows with an AI-powered Smarty Collar. These collars constantly monitor health, behavior, and location. The raw data is then converted into an encrypted digital identity tied directly to the B3 credit agreement.Continuous tracking of cattle prevents farmers from double-pledging the same cattle across multiple loans. It also includes built-in safeguards that allow the farmer to swap one dead cow for a live one.Cowmed already tracks about 100,000 dairy cows across more than 1,000 farms. The herd is worth over $395 million. The company expects up to 20% of its network to adopt this tokenized financing model, unlocking $77.6 million in fresh credit for the agricultural sector.McKinsey & Company forecasts market of tokenized assets to grow to about $4 trillion by 2030, and Standard Chartered projected $30 trillion by 2034. As of March 2026, however, the total value of tokenized assets stood at $25 billion.12345678910Crypto Flows, Share and the Selective RotationCrypto Flows, Share and the Selective RotationMarkets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.Why it matters:Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.View Full Report