Brazil's B3 exchange milks tokenized cattle for a $19.6K loan collateral first 🐄

B3, the Brazilian stock exchange, has completed a transaction backing a loan with tokenized dairy cattle, according to a report from CNN Brasil. The loan totaled 100,000 Brazilian reais ($19,600) and was secured by 10 dairy cows from Fazenda Engenho Velho in Paraná, a southern Brazilian state. The animals were valued at roughly 120,000 Brazilian reais ($23,500).

Brazilian investment fund Target FIDC structured the deal. Each cow was issued a unique digital token tied to an encrypted digital identity, and agriculture technology firm Cowmed equipped the herd with AI-powered smart collars that monitor the animals' health, reducing the need for physical inspections. Cowmed said it currently monitors approximately 100,000 dairy cows across 1,000 Brazilian farms.

The arrangement is being framed as a new pathway for livestock farmers to expand access to credit by using their cattle as on-chain collateral. Cointelegraph reported it has reached out to B3 for comment on the transaction. B3 has publicly explored blockchain-based infrastructure for capital markets, and the cattle-backed loan marks a new asset class for that work.

The deal adds tokenized livestock to a broader list of real-world assets being placed on distributed ledgers, a category that already includes money market funds, government debt and private credit. Magazine coverage has separately examined how Hong Kong is building tokenized bonds into functioning market infrastructure. The Brazilian transaction was disclosed through regional press and has not been publicly priced on a secondary venue.