ETHZilla (ETHZ) has unveiled a tokenized aviation asset, marking a major milestone in its plan to bring revenue-generating real-world assets to Ethereum.
The new offering, Eurus Aero Token I, allows accredited investors to access rental income from two commercial aircraft engines currently used by a major U.S. airline, ETHZilla announced Thursday.
The deal, managed through ETHZilla’s new subsidiary ETHZilla Aerospace LLC, transforms a traditionally institutional asset, aircraft engine leasing, into fractional tokens.
Each $100 token represents a claim on monthly rental payments, with expected annual returns of around 11%, according to the company. ETHZIlla acquired the jet engines for $12.2 million late last month.
Tokens are issued on Ethereum Layer 2 and distributed via Liquidity.io, a platform backed by ETHZilla.
Various companies purchase and lease jet engines to aircraft operators. Companies rent these engines as spares to ensure their operations continue if their main engines fail. Companies such as AerCap, Willis Lease and SMBC Aero Engine Lease are involved in the venture.
This marks a shift from ETHZilla’s previous focus as a crypto treasure. The company sold over $114 million worth of ETH last year and has shifted its capital toward tokenized assets such as home loans, auto loans, and now aerospace equipment. The company still owns 69,802 ETH ($136.5 million).
Eurus tokens are secured by engines, leases and insurance, with distribution directly integrated into smart contracts.
The leases run through 2028 and include a buy-sell agreement that could return additional capital to investors at the end of the term. ETHZilla plans to expand this model to other asset classes, the company wrote.
