Brazilian dairy farmers are tokenizing livestock on the stock exchange to access credit as the sector faces a lending crisis.
RWA & Tokenization ·
Ten dairy cows at a farm in Paraná, Brazil, secured a R$100,000 credit facility through blockchain-based collateral tracking, marking the first tokenized livestock deal formally registered on Brazil's stock exchange. Each animal received a unique encrypted digital identifier generated from health and location data collected via AI-powered sensor collars, eliminating the need for physical inspections and the typical 60 percent haircut banks apply to livestock collateral. The arrangement demonstrates a potential response to the sector's intensifying credit strain, with agricultural bankruptcy protection filings reaching 1,990 in 2025 compared to 534 in 2023.