ETHZilla Corporation (Nasdaq: ETHZ) developed the first tradeable tokenized aviation assets on the Ethereum blockchain. The Eurus Aero Token I (EAT1) has been launched and will be backed by two CFM56 jet engines bought for USD 12.2 million (presently leased to one of the largest airline carriers in the U.S.). The first time ever that tokenized airport assets will have been issued on a blockchain and backed by actual physical jet engines.
Making Aviation Leasing Available for Everyone, One Token at a Time
ETHZilla Corporation has introduced a new structural method of offering institutional-grade income-producing leasing asset classes to the masses through tokenized aviation assets and using smart contracts.
Historically, commercial aircraft engine leasing has been dominated by large companies (like AerCap) and has only been available to large private equity and institutional investors. Through its subsidiary, ETHZilla Aerospace, ETHZilla has broken down the barriers of entry to this asset class by creating a $100 ERC-20 token (with a minimum amount of 10 tokens required for purchase) on the Ethereum layer 2 (L2), which will represent a claim against monthly lease payments generated from two engines used on the Boeing 737-800 aircraft.
The target cash-on-cash return of 11% will be comprised of a combination of base and usage payments, and all distributions will be made directly to the owners of the tokens through the application of smart contracts. Capital recovery at the end of the term will be provided for through a USD 3 million put/call agreement between ETHZilla and Aero Engine Solutions (the engine service provider).
Why is this important? Ethereum and real-world assets.
This launch for sure marks ETHZilla’s deliberate evolution from a passive Ethereum treasury (still holding roughly 70,000 ETH valued at USD 136 million) into an active real-world asset (RWA) tokenization engine. The company has sold more than USD 114 million of ETH in the last year as part of that shift.
According to Chairman & CEO McAndrew Rudisill, this action modernizes fractional ownership of assets that have historically restricted retail investors’ access. The company is only wrapping token offerings through the Liquidity.io ecosystem for accredited investors under Regulation D, setting a compliance-driven strategy uncommon among early-stage tokenization efforts.
What’s with Ethereum’s Price
The ETH price is rounding USD 1,947 at the time of writing, 1,7% down in 24 hours.. Buyers seem to be sneaking back again. Analysts suggest the accumulation face is on. But if the price fails to jump above the USD 2,000, it could retreat to the next support of USD 1,830. Although the ETH staking reached a record 36.8 million ETH locked, marking growing confidence in the network, the overall market is still under pressure. Trade cautiously.
