Farmers in Paraná, Brazil, struggling to get banks to lend them cash, became the first to tokenize livestock and list 10 dairy cow tokens to trade on the country’s national B3 stock exchange. They generated almost $20,000 in credit backed by their livestock, indicating the potential of tokenizing RWAs 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 where farmers face increasingly strict lending limits imposed by local banks on small agricultural businesses.
“We take the cow, which is a real and tangible asset, and transform it into a digital asset backed by a 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 digitization allows formal registration with B3 as movable property,” Martins added. “The process is simple and provides the producer with an advantageous opportunity to finance itself, opening a new guarantee alternative at a time of strong credit restrictions in the agribusiness.”
