On July 21, a farm in Imbituva, Paraná, took out a R$100,000 loan backed by ten tokenized dairy cows. The cows, valued at R$120,000, were turned into digital assets and registered on B3, Brazil's main exchange infrastructure. The move makes the collateral auditable and cuts fraud risk.
How the Tokenized Loan Works
The loan uses a CPR-F, a financial rural product note secured by collateral. Each cow gets a digital twin created from on-farm telemetry — smart collars made by agtech firm Cowmed. That data, combined with B3's digital registration of secured credit, turns the herd into a verifiable asset. The loan-to-value ratio hit 83%, high but acceptable for short-dated working capital lines that are closely monitored.
The Players Behind the Deal
BMP Sociedade de Crédito Direto originated the loan. The credit rights were then sold to Target FIDC, which handled the B3 registration. Cowmed, the company behind the smart collars, monitors about 100,000 dairy cows across roughly 1,200 farms in the Americas. The combined herd value under its watch is estimated at around R$2 billion.
Scaling Tokenized Cattle Lending
Target FIDC plans to issue roughly R$5 million in these tokenized cattle loans by the end of 2026. The pilot shows that even a small farm can tap into formal credit markets using livestock as collateral — as long as the animals are tracked in real time. The high LTV works because the cows don't disappear; their location and health data are always available.
For now, the ten cows on B3 are a test. But with Cowmed's reach and B3's infrastructure, the model could spread fast. The next step: Target FIDC will keep issuing these notes, aiming for that R$5 million target by year-end.
