Brazil’s B3 stock exchange has reportedly found a new use for dairy cows by backing a loan with tokenized cattle.

The transaction involved a loan of 100,000 Brazilian reais ($19,600) secured by 10 dairy cows from Fazenda Engenho Velho in the southern Brazilian state of Paraná, valued at about 120,000 Brazilian reais ($23,500). The deal was structured by Brazilian investment fund Target FIDC, according to CNN Brasil.

Each cow received a unique digital token linked to an encrypted digital identity, while AI-powered smart collars from agriculture tech company Cowmed monitor each animal’s health, reducing the need for physical inspections.

The transaction introduces a new way for livestock farmers to expand their access to credit by using cattle as collateral. Cowmed said it currently monitors around 100,000 dairy cows across 1,000 Brazilian farms.

Cointelegraph has approached B3 for comment.

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