A loan secured by 10 tokenised dairy cows has been registered on Brazil’s B3 stock exchange. Cointelegraph reported on July 24 that the case is among the early examples in Brazil of using tokenised livestock as loan collateral.
The loan is for 100,000 Brazilian real, about $19,600. The 10 dairy cows pledged as collateral are owned by Fazenda Engenho Beltrão in Parana state in southern Brazil and are valued at about 120,000 Brazilian real, about $23,500. The deal structure was designed by Brazilian investment fund Target FIDC.
Each cow was assigned a unique digital token linked to an encrypted digital identity. Cointelegraph reported that agritech company Cowmed’s AI-based smart collars track each cow’s health status, reducing the need for on-site due diligence.
Cowmed is currently monitoring about 100,000 dairy cows at 1,000 farms in Brazil.
Chi-gyu Hwang
delight@d-today.co.kr