Farmers in Parana, Brazil, struggling to get banks to lend them cash, became the first to tokenize livestock, placing 10 dairy cow tokens for trading on the country’s B3 national exchange. They generated nearly $20,000 in credit backed by their cattle, signaling the potential of tokenizing RWAs as a financing tool.
The Malkeko tokenization 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 agribusinesses.
“We take the cow, which is a real and tangible asset, and transform it into a digital asset supported by a unique code that is monitored in real time,” Thiago Martins of Cowmed, a Brazilian Agtec company, told CNNBrasil recently.
Martins and his company did not immediately respond to a CoinDesk request for comment.
“This digitization allows for formal registration with B3 as a chattel,” added Martins. “The process is simple and gives the producer an advantageous opportunity to finance himself, opening a new alternative to collateral in a time of severe credit constraints in agribusiness.”
