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ETHZilla gears up for launch: Discover how you can acquire a share of a jet engine for only $100.
Each $100 token signifies a stake in monthly lease revenues, with anticipated annual returns estimated at approximately 11%.
(Artturi Jalli/Unsplash/Modified by CoinDesk)
Key points:
- ETHZilla has introduced a tokenized aviation asset, Eurus Aero Token I, providing accredited investors with access to lease income from two commercial jet engines.
- Each $100 token signifies a claim on monthly lease revenues, with anticipated annual returns around 11%.
- ETHZilla is transitioning from a crypto treasury model to tokenized assets, including home loans, car loans, and now aerospace equipment.
ETHZilla (ETHZ) has introduced a tokenized aviation asset, representing a significant advancement in its strategy to incorporate income-generating real-world assets into Ethereum.
The latest offering, Eurus Aero Token I, enables accredited investors to receive lease income from two commercial jet engines currently utilized by a prominent U.S. airline, as announced by ETHZilla on Thursday.
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This initiative, managed through ETHZilla’s newly established ETHZilla Aerospace LLC subsidiary, transforms a traditionally institutional asset, aircraft engine leasing, into fractional tokens.
Each $100 token represents a stake in monthly lease payments, with expected annual returns estimated at around 11%, according to the company. ETHZilla acquired the jet engines for $12.2 million late last month.
The tokens are issued on Ethereum Layer 2s and distributed via Liquidity.io, a platform supported by ETHZilla.
Various companies procure and lease jet engines to aircraft operators. These firms lease engines as backups to ensure operations can continue if primary engines fail. Companies like AerCap, Willis Lease, and SMBC Aero Engine Lease are engaged in this sector.
This represents a shift from ETHZilla’s previous emphasis as a crypto treasury. The company sold over $114 million in ETH last year and redirected its resources toward tokenized assets such as home loans, car loans, and now aerospace equipment. The firm continues to hold 69,802 ETH ($136.5 million).
The Eurus tokens are backed by the engines, lease agreements, and insurance, with distribution integrated into the smart contracts.
The leases are set to run through 2028 and include a buy-sell agreement that may return additional capital to investors at the end of the term. ETHZilla intends to broaden this model into other asset classes, as stated by the firm.
