Farmers in Parana, Brazil, struggling to get banks to lend them money, became the first to tokenize livestock and place 10 dairy cow tokens for trading on the country’s national B3 exchange. They generated nearly $20,000 in credit backed by their livestock, signaling the potential of RWA tokenization as a financing tool.
The tokenization of dairy cows in Brazil is a world first and serves as a test in a real-world scenario in which farmers face increasingly strict lending limits imposed by local banks on small agricultural businesses.
“We take the cow, which is a real, tangible asset, and turn it into a digital asset backed by unique code monitored in real time,” Thiago Martins of Cowmed, a Brazilian Agtec company, recently told CNNBrasil.
Martins and his company did not immediately respond to a request for comment from CoinDesk.
“This digitalization allows for formal registration with B3 as movable property,” Martins added. “The process is simple and gives the producer an advantageous opportunity to finance themselves, thus opening a new guarantee alternative at a time of severe credit restrictions in the agribusiness. »
