Brazil tokenizes AI‑monitored cows as collateral for first rural loan

Brazil's stock exchange B3 recorded its first credit operation that used tokenized cattle as collateral. Ten dairy cows from the Engenho Velho farm near Belo Horizonte were equipped with electronic collars developed by Cowmed. The collars collect health, behavior and location data, which artificial‑intelligence algorithms analyze and make available to the lender in real time.

The cows were digitally tokenized on a blockchain, each receiving a unique, immutable code that prevents double‑use as security. Valued at R$120 000, the herd secured a R$100 000 rural loan, resulting in a guarantee‑to‑debt ratio of 1.2. Humberto Brenner, director of Target FIDC, said the detailed monitoring reduces the risk that previously limited livestock‑backed financing. Cowmed CEO Thiago Martins described the device as an advanced smartwatch for bovines, enabling early disease detection and better herd management. The transaction signals a new market for agro‑assets and could broaden access to credit for Brazilian producers.