- Crypto firm ETHZilla has launched the Eurus Aero Token I, a token offering backed by leased commercial jet engines, priced at $100 each.
- The company is pivoting from simply holding treasury Ether to building a business dedicated to tokenizing real-world assets like aviation equipment.
- ETHZilla aims for an 11% return for token holders tied to the lease contracts, which extend into 2028.
On Thursday, cryptocurrency treasury firm ETHZilla launched a novel token offering that grants investors access to equity in physical jet engines, marking a significant shift into the world of tokenized real-world assets. The new Eurus Aero Token I, issued by its subsidiary ETHZilla Aerospace, represents a stake in two engines leased to a major US airline, as the company stated in its official announcement.
Each token is priced at $100, with a minimum purchase of 10 tokens required. ETHZilla is targeting an 11% return rate for investors who hold the token for the full term of the underlying leases, which run into 2028.
This move represents a strategic pivot, as ETHZilla was formerly a biotech company before rebranding to buy Ether last July. Chairman and CEO McAndrew Rudisill said the project “expands investment access and modernizes fractional asset ownership in markets that have historically been available only to institutional credit and private equity.”
He further added that “offering a token backed by engines leased to one of the largest and most profitable US airlines serves as a strong use case in applying blockchain infrastructure to aviation assets with contracted cash flows and global investment demand.”
In a shareholder letter in December, Rudisill confirmed the company is moving away from solely holding ETH to building a business focused on bringing assets on-chain. Consequently, it purchased the two jet engines for a combined $12.2 million in January after selling some of its Ether.
The company also plans to launch tokens for other asset classes, including home and car loans. Meanwhile, the broader market for tokenized real-world assets is growing, with over $24 billion estimated to be on-chain across more than 846,808 holders, according to RWA.xyz.
ETHZilla’s own Ether reserves have decreased from previous highs. A September SEC filing disclosed it held 102,246 Ether, valued then at approximately $443 million. Currently, Strategic Ether reserves lists its holdings at over 93,000 ETH, while CoinGecko estimates a lower figure of about 69,802 ETH.
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