Ten dairy cows from a farm in Paraná were used as collateral for a loan registered on B3, Brazil's main stock exchange. The operation involved R$ 100 mil in credit and animals valued at approximately R$ 120 mil.
The deal was structured with Fazenda Engenho Velho, located in Imbituva, and represents the first formal acceptance of tokenized cattle as collateral on B3. The proposal uses technology to transform physical animals into verifiable digital assets.
“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.”, said Thiago Martins, CEO of Cowmed, on July 23, 2026.
Artificial intelligence monitors the animals
Each cow received a unique digital identity based on health, behavior, and location information. The data is collected by smart collars developed by Cowmed, a technology company focused on the agricultural sector.
The system converts this information into a code linked to the credit contract. In this way, the lender can digitally track the animal's condition without relying on frequent in-person inspections.
The ten animals were valued at R$ 120 mil, ensuring coverage of 1.2 times the loan amount. The 20% margin offers additional protection for the operation.
Companies structured the rural credit
The transaction involved three participants. Cowmed was responsible for monitoring the animals, while BMP Sociedade de Crédito Direto originated the financing.
Later, the credit rights were assigned to Target FIDC, responsible for structuring the receivables. The fund registered the operation on B3's platform.
“Banks will increasingly require real collateral and new information.”, stated Humberto Brenner, director of Target FIDC, on July 23, 2026.
The technology may also reduce a recurring problem in agricultural credit. Financial institutions usually apply significant discounts to the value of cattle used as collateral due to the difficulty of verifying their condition and location.
Tokenization may expand access to credit
Cowmed monitors approximately 100 mil cows across 1.200 properties spread over six countries. The herd tracked by the company is estimated at around R$ 2 bilhões.
The company estimates that up to 20% of this patrimony, equivalent to approximately R$ 400 milhões, may be used as tokenized collateral over the next two years.
Target FIDC is also analyzing operations with four other Brazilian producers and intends to grant around R$ 5 milhões in credit through the model by the end of 2026.
B3 is also preparing its own initiatives related to tokenization and a stablecoin linked to real market assets. In this context, the use of cattle as collateral works as an initial application of tokenized real-world asset technology in the Brazilian financial market.