BULLISH 📈 : ETHZilla Launches Tokenized Jet Engine Lease Product
ETHZilla (NASDAQ: ETHZ) has launched its first tokenized aviation product, offering investors equity in leased commercial jet engines. This marks a shift from a crypto treasury focus to managing on-chain real-world assets (RWAs).
- The Eurus Aero Token I offers fractional ownership in two CFM56 jet engines leased to a major US airline.
- Leveraging Ethereum's Layer 2 network Arbitrum, it aims to democratize access to aviation finance typically reserved for private equity and institutional markets.
- Token priced at $100 each with a minimum purchase of 10 tokens, targeting an 11% annualized return until the lease term ends in 2028.
- Monthly distributions are made via smart contracts when funds are available.
- The company purchased the engines for $12.2 million in January by liquidating part of its Ether treasury.
This strategic move aligns with the trend of integrating DeFi infrastructure with traditional finance models, aiming to manage cash-flowing assets. ETHZilla plans to expand its on-chain portfolio to include manufactured home loans and auto loans.
Chairman and CEO McAndrew Rudisill highlighted the utility of blockchain in managing aviation assets with contracted cash flows, reinforcing Ethereum's role as a base layer for financial applications.
This initiative occurs amid market volatility and pressures on DeFi TVL, emphasizing key considerations for treasury managers.