Brazil’s stock exchange, B3, has completed its first tokenized cattle transaction, with 100,000 Brazilian reais, or about $18,000, worth of livestock traded on-chain, according to CNN Brasil.

The transaction enables investors to acquire fractional ownership of cattle through tokens instead of purchasing entire animals. The structure lowers the amount of capital required to gain exposure to Brazil’s livestock industry, which is among the world’s largest beef-producing sectors.

According to the report, approximately 100,000 dairy cows are currently monitored across more than 1,000 farms in Brazil and other countries in the Americas. The estimated value of the monitored herd exceeds $400 million.

The initiative was conducted within B3’s regulated market infrastructure, which has been expanding its use of tokenized assets. For agricultural finance, the central operational challenge is verifying that physical assets used as collateral can be identified, monitored, and replaced when necessary without relying solely on manual inspections.

The model was developed by CowMed and connects cattle herds to the capital market through smart devices installed on the animals. The collars monitor real-time information including the cows’ health, behavior, and location. That data is converted into an encrypted digital code, which serves as a unique electronic identity for each animal.

The animal identification is attached to the credit agreement and registered with B3. This allows the livestock to be used as collateral without requiring on-site inspections of rural properties.

The platform also includes mechanisms designed to address biological risks. If an animal dies, the producer can digitally replace it with another animal. The operation is already structured with approximately 20% additional animals to help maintain the collateral during the financing period.

Tokenization converts ownership rights in physical assets into blockchain-based digital tokens that can be traded more efficiently and in smaller denominations. While much of the market’s activity has focused on tokenized bonds, funds, and real estate, agricultural assets such as cattle are increasingly being explored as a potential asset class. The cattle pilot shows how tokenization efforts are moving beyond financial instruments into assets whose value depends on continuous tracking of real-world conditions.

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The pilot comes as financial institutions globally continue to accelerate efforts to tokenize real-world assets. Industry participants have said the real-world asset tokenization market could grow into the trillions of dollars over the coming decade, with agriculture among the sectors being tested for blockchain-based investment products.

Approximately 20% of the producers served are expected to adopt the new financing model, which could represent about $80 million in credit operations backed by tokenized herds.