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ETHZilla Fractionalizes Monthly Cash Flows of Leased Aircraft Engines with Eurus Aero Token I

ETHZilla Fractionalizes Monthly Cash Flows of Leased Aircraft Engines with Eurus Aero Token I
Pioneering Tokenization of Aviation Assets
ETHZilla (NASDAQ: ETHZ), an Ethereum-focused treasury firm that has recently shifted its strategic focus toward real-world asset (RWA) tokenization, is preparing to launch the Eurus Aero Token I later this week. This initiative represents a groundbreaking effort to fractionalize ownership of leased commercial aircraft engines, enabling investors to access the cash flows generated by ETHZilla Aerospace, a newly established subsidiary. ETHZilla Aerospace has leased two commercial jet engines to a major U.S. airline, and token holders will receive a proportional share of the base rent and utilization-based payments. These distributions will be made onchain through an ERC-20 token.
The company has stated that token holders will receive “cash or immediately available funds, to the extent that funds are available for distribution.” The Eurus Aero Token I is secured by a comprehensive collateral package, which includes the aircraft engines themselves, associated lease receivables, reserves, and insurance proceeds. The leases extend through 2027 and 2028 and incorporate a $3 million put/call option, allowing ETHZilla to sell the engines to a jet engine services provider. At the conclusion of the lease term, any residual proceeds are expected to be distributed pro rata to token holders, offering the potential for both ongoing income and capital recovery.
ETHZilla’s CEO, McAndrew Rudisill, emphasized the significance of this transaction, stating, “This transaction marks an important milestone in our effort to bring real-world, income-producing assets on-chain at institutional scale. 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 and global investment demand.”
Context and Challenges in the Tokenization Landscape
ETHZilla’s latest venture arrives amid a surge of interest in tokenizing real-world assets, a sector that has expanded to encompass private credit, sovereign debt, commodities, and equities. Industry projections, such as those from Ark Invest, estimate that tokenized assets could grow from approximately $22 billion today to $11 trillion by 2030. ETHZilla, previously recognized for a $425 million private investment in public equity (PIPE) agreement to establish a digital asset treasury, has pivoted from primarily holding Ethereum to focusing on RWA tokenization. Recently, the firm—supported by Peter Thiel’s Founders Fund—tokenized a portfolio of 95 home loans, signaling its commitment to this evolving market.
Despite the promising outlook, ETHZilla faces several challenges. Regulatory scrutiny remains intense, with ongoing debates over crypto market structure and delays in Senate hearings on crypto regulation contributing to uncertainty. The broader downturn in the crypto market, including recent losses exceeding $7 billion among Ethereum “whales,” may also affect investor confidence in Ethereum-based projects. Furthermore, competition is intensifying as other tokenization platforms, such as Securitize, continue to forge partnerships with major firms to bring private assets onchain, potentially diverting capital and attention from ETHZilla’s offerings. Nonetheless, industry reports indicate that interest in tokenized securities remains robust.
Looking forward, ETHZilla intends to broaden its tokenization initiatives by launching additional Ethereum Layer 2 tokens representing other asset classes, including manufactured home loans and car loans, through existing agreements with companies such as Zippy and Karus.
The Eurus Aero Token I is scheduled for launch later this week.

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