Brazilian dairy farmers tokenize cows to secure loans, sidestepping bank caps

Brazilian dairy producers have begun tokenizing their cows to access financing. By creating digital tokens representing each animal, they can secure loans directly from investors. This approach allows them to bypass conventional bank lending caps. The tokens are recorded on a blockchain, ensuring traceability and ownership. Farmers can use the borrowed funds to expand operations or improve herd health. The method reflects growing interest in decentralized finance within agriculture. Regulators are watching the practice for compliance with financial rules. The initiative could reshape credit access for rural enterprises.