ETHZilla Corporation has launched Eurus Aero Token I, a tokenized aviation asset backed by two Boeing 737-800 engines leased to a major U.S. airline. The digital token, issued on Ethereum, enables accredited investors to access aviation lease cash flows previously reserved for institutional players.
Each token costs $100, with a minimum purchase of 10 tokens. The target annual return is approximately 11% over the full lease term. Collateral includes the engines, lease receivables, reserves, and insurance. ETHZilla Aerospace, a wholly owned subsidiary, ensures regulatory compliance and on-chain verification via Ethereum Layer 2 protocols.
Engine Collateral and Yield Mechanics
The two CFM56 engines were acquired for $12.2 million. They generate monthly cash flows from base rent and utilization-based payments, distributed directly to token holders on-chain. CEO McAndrew Rudisill said, "Offering a token backed by engines leased to one of the largest and most profitable U.S. airlines serves as a strong use case." Engine maintenance is handled by the airline during the lease and by Aero Engine Solutions post-lease.
A $3 million put/call right allows ETHZilla Aerospace to sell the engines at lease conclusion, potentially returning additional capital to token holders.
Lowering Barriers for Retail Investors
Traditional aviation leasing funds require high capital thresholds and restrict access to institutions. Tokenization cuts the entry point to $100, opening opportunities to accredited individual investors. Automated distribution and on-chain verification increase transparency and reduce intermediaries.
Token holders benefit from multi-layer collateral: engines, lease receivables, cash reserves, and insurance. In case of airline default, insurance and collateral can cover losses.
Expansion Roadmap: From Aviation to Auto and Home Loans
ETHZilla plans to replicate its tokenized finance framework across other real-world assets. Upcoming Ethereum Layer 2 token offerings may include manufactured home loans through Zippy and car loans through Karus. Both asset classes generate stable cash flows suited for fractionalization.
By bridging blockchain technology with high-yield, income-producing assets, ETHZilla aims to connect traditional finance with decentralized investment methods.