ETHZilla (ETHZ) has unveiled a tokenized aviation asset, marking a major step in its plan to bring real-world income-producing assets to Ethereum.
The new offering, Eurus Aero Token I, gives accredited investors access to lease revenue from two commercial jet engines currently in use by a major US airline, ETHZilla announced Thursday.
The deal, which runs through ETHZilla’s newly formed ETHZilla Aerospace LLC subsidiary, turns a traditional institutional asset, aircraft engine leasing, into fractions.
Each $100 token represents a claim on monthly lease payments, with an expected annual return of around 11%, according to the company. ETHZIlla bought the jet engines for $12.2 million at the end of last month.
Tokens are issued on Ethereum Layer 2s and distributed through Liquidity.io, a platform supported by ETHZilla.
Various companies buy and lease jet engines for aircraft operators. The companies lease these engines as spares to ensure that their operations can continue if their primary engines fail. Firms including AerCap, Willis Lease and SMBC Aero Engine Lease are involved in the business.
This marks a shift from ETHZilla’s previous focus as a crypto wallet. The company sold over $114 million in ETH last year, redirecting its capital toward tokenized assets like home loans, car loans, and now aerospace equipment. The firm still owns 69,802 ETH ($136.5 million).
Eurus tokens are secured by engines, leases and insurances, with distribution built directly into the smart contracts.
The leases run until 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 firm wrote.
