Ether treasury company ETHZilla (ETHZ) said it purchased 20% of Karus, an AI-powered auto lending platform, in a deal valued at $10 million.
The deal marks ETHZilla’s entry into the US asset-backed securities market using blockchain to tokenize real-world credit, the company said in a press release.
Karus specializes in AI models that analyze risk at the loan level, using over 20 million historical auto loan results and thousands of real-time variables.
ETHZilla plans to integrate the technology into its Ethereum-based infrastructure to tokenize loans, turning predictive credit data into tradable on-chain assets. The companies say the first tokenized loan wallets will be available in early 2026.
The transaction includes $3 million in cash and $7 million in ETHZilla shares. ETHZilla will also have access to Karus’ network of more than 20,000 auto dealerships, banks and credit unions in the United States, the companies said.
Karus, backed by investors including Peter Thiel’s Tacora Capital, has processed more than $5 billion in auto loans through its decision engine.
ETHZilla shares are up nearly 5% since opening at $11.17. The company holds 94,060 ETH in its treasury, valued at approximately $290 million.
