Cash flows from the leased engines will be distributed monthly to token holders via blockchain technology.
ETHZilla has expanded its operations into the tokenization sector, launching a new project focused on jet engine leases. The company, through its new subsidiary ETHZilla Aerospace, is offering tokenized equity in jet engines it recently acquired. This move comes as ETHZilla seeks to diversify its investments amid Ethereum prices continuing to decline.
ETHZilla’s new venture centers around tokenizing a $12.2 million investment in two leased CFM56 commercial jet engines. These engines are leased to a major U.S. airline, though the company has not disclosed the airline’s identity due to confidentiality concerns. By launching the Eurus Aero Token I on the Arbitrum layer-2 network, ETHZilla offers tokenized equity in the engines, allowing investors to participate in this emerging market.
ETHZilla CEO McAndrew Rudisill commented on the project, stating, “Offering a token backed by engines leased to one of the largest and most profitable U.S. airlines serves as a strong use case in applying blockchain infrastructure to aviation assets with contracted cash flows.” The company believes that this move will help modernize fractional ownership of aviation assets, a market traditionally dominated by institutional investors and private equity firms.
The Eurus Aero Token I, available to accredited investors, will be sold through Liquidity.io’s token marketplace. Each token is priced at $100, with a minimum investment of $1,000, or 10 tokens. The project aims to offer a return of approximately 11% if token holders hold until the lease agreements conclude in 2028. However, a disclaimer notes that actual returns could differ based on various factors.
Cash flows from the leased engines will be distributed monthly to token holders through the blockchain. ETHZilla has structured the tokens with collateral consisting of the engines, related lease receivables, insurance proceeds, and other reserves. The company’s tokenization model ensures transparency and on-chain distribution, making it accessible to a broader group of investors.
ETHZilla’s expansion into tokenized aviation assets is part of a broader effort to pivot from its Ethereum holdings. The firm recently revealed a $250 million share buyback program, following a drop in the company’s market cap. ETHZilla’s share price has seen fluctuations, including a significant drop in recent months.
