Imagine a dairy farmer in Paraná needing cash fast. Instead of waiting weeks for bank approval, they turn ten cows into digital tokens and use these as loan collateral. The funds clear in just days, without moving a single animal.
This isn’t a futuristic idea. On July 21, 2026, Fazenda Engenho Velho in Imbituva secured a R$100,000 CPR-F loan by tokenizing ten dairy cows valued at R$120,000. The transaction was recorded on Brazil’s exchange platform, B3, ensuring transparency and preventing fraud.
The loan originated from BMP Sociedade de Crédito Direto. Afterwards, the credit rights were transferred to Target FIDC, which registered the CPR-F on B3. This approach blends traditional agricultural financing with new technology, turning livestock into easily tradeable, verifiable assets.
Brazilian farms have long relied on CPRs (rural product notes) to finance operations. The innovation lies in combining B3’s digital credit registration with on-farm telemetry devices that track herd activity in real time. This data-backed system means lenders can verify the health and value of the livestock remotely, speeding up approvals and lowering risks.
Telemetry is powered by smart collars, such as those developed by Cowmed, which monitor vital signs and movement across roughly 1,200 farms in the Americas, covering 100,000 dairy cows worth about R$2 billion. This real-time tracking provides an unprecedented level of collateral transparency.
CPR-F is a financial instrument that allows farmers to raise money now, backed by future agricultural output and secured assets like tokenized cattle. Registering these loans on B3 adds a layer of security by logging liens and credit transfers in a regulated database.
Target FIDC, after this first successful deal, is already examining four more farmers for similar loans and plans to issue approximately R$5 million in tokenized cattle-backed credit by the end of 2026.
This leap forward opens new possibilities for family farms operating on thin margins, providing them with faster and more accessible financing options. At the same time, credit funds gain access to asset-backed yields, and banks explore cost-effective loan origination channels.
