Ether financing firm ETHZilla (ETHZ) said it acquired 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 by using blockchain to symbolize real-world credit, the company said in a press release.
Karus specializes in AI models that analyze loan-level risk 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 the loans and turn predictive credit data into tradable onchain assets. The companies say the first tokenized loan portfolios will be available in early 2026.
The transaction includes $3 million in cash and $7 million in ETHZilla stock. ETHZilla will also gain access to Karus’ network of more than 20,000 U.S. auto dealers, banks and credit unions, the companies said.
Karus, backed by investors including Peter Thiel’s Tacora Capital, has processed over $5 billion in auto loans through its decision engine.
ETHZilla shares are up nearly 5% since the opening bell to $11.17. The company holds 94,060 ETH in its treasury, worth around $290 million.
