ETHZilla (Nasdaq: ETHZ) has rolled out its first tokenized real-world asset product, offering accredited investors exposure to revenue generated by leased commercial jet engines through blockchain-based tokens issued on Ethereum Layer 2.
The product, called Eurus Aero Token I, is being issued by ETHZilla Aerospace LLC, a newly formed wholly owned subsidiary focused on aviation assets.
The tokens are backed by two CFM56 commercial jet engines that the company acquired for approximately $12.2 million. Each token is priced at $100, with a minimum purchase of 10 tokens, and carries a targeted annual return of about 11% if held through the lease term ending in 2028.
Aviation Cash Flows, Tokenized
Unlike traditional aviation leasing investments—typically reserved for private equity firms or large institutional funds—the Eurus Aero Token I offers fractional exposure through ERC-20 tokens on Ethereum L2. The engines are currently leased to a major U.S. airline under contracts that generate monthly base rent and usage-based payments.
Those lease payments will be collected by ETHZilla Aerospace and distributed to token holders on-chain, subject to available funds.
The structure includes collateral coverage tied to the engines themselves, related lease receivables, reserve accounts, and insurance proceeds. The engines are unlevered, and the company has indicated it does not intend to introduce debt to enhance returns for this issuance.
McAndrew Rudisill, chairman and chief executive officer of ETHZilla, framed the launch as a proof of concept for institutional-scale tokenization.
“This transaction marks an important milestone in our effort to bring real-world, income-producing assets on-chain at institutional scale,” Rudisill said.
He added that aviation assets with contracted cash flows represent a compelling use case for blockchain infrastructure, particularly in markets that have historically been accessible only to institutional credit investors.
Structured Exit and Residual Value
The lease agreements run through 2028 and include a $3 million put/call mechanism with an established engine services provider. Depending on which party exercises the option, ETHZilla Aerospace may sell the engines at the end of the lease term. Any residual proceeds after taxes are expected to be distributed pro rata to token holders.
Maintenance during the lease period will be handled by the airline operator, with post-lease servicing by a third-party engine services firm. This arrangement is designed to preserve asset value while the tokens generate income from contracted lease payments.
The tokens are being offered exclusively through Liquidity.io, a regulated broker-dealer platform in which ETHZilla has invested. The offering is limited to accredited investors and structured to comply with Regulation D requirements.
From Biotech to Blockchain Infrastructure
ETHZilla’s aviation token marks a significant step in its corporate transformation. The company previously operated as 180 Life Sciences Corp, a clinical-stage biotech firm, before pivoting to cryptocurrency in mid-2025. It initially built a sizable Ether treasury, disclosing in September that it held over 102,000 ETH acquired at an average price near $3,948.
Recent estimates suggest ETHZilla’s Ether holdings now range between roughly 69,800 and 93,000 ETH, reflecting partial sales and price fluctuations. The jet engine acquisition followed the sale of a portion of its Ethereum reserves.
Rudisill had signaled late last year that the firm would move beyond simply holding crypto assets.
“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,” he said.
The Eurus Aero Token I represents the first deployment of what ETHZilla describes as a broader tokenized finance framework. The company plans to introduce additional Ethereum L2-based tokens tied to manufactured home loans and auto loans through existing agreements with Zippy and Karus.
Tokenization as a Revenue Strategy
Crypto treasury strategies have lost some of their early momentum as digital asset prices cooled and market volatility persisted. In response, several firms are exploring alternative revenue models that generate predictable cash flows. Real-world asset tokenization has emerged as one such path.
By pairing blockchain-based distribution with traditional asset-backed structures, ETHZilla is positioning itself to earn income from reserve yields and asset performance rather than relying solely on appreciation in digital tokens.
Whether investors embrace tokenized jet engines as a new yield product remains to be seen. For now, ETHZilla has placed a tangible, income-producing asset on-chain—testing whether blockchain rails can broaden access to markets long dominated by institutional capital.
