ETHZilla holds shares in Karus to tokenize the auto loan portfolio using an AI model.

TapChiBitcoin

2025-12-04 01:00:15

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ETHZilla (ETHZ) — the crypto treasury holding company — has just made a strategic move in the onchain credit sector by acquiring a fully-diluted 20% stake in automotive finance AI startup Karus for $10 million. The deal includes $3 million in cash and $7 million in ETHZ shares, allowing ETHZilla to integrate Karus’s AI credit assessment model to launch tokenized auto loan portfolios on the blockchain starting in early 2026.

Karus’s system has been trained on over 20 million historical loans and has assessed more than $5 billion in loans, enabling ETHZilla to build onchain asset portfolios based on pre-modeled data. With its extensive network of car dealerships, banks, and credit unions, Karus paves the way for a substantial supply for future onchain securitization activity. ETHZilla estimates that every $100 million invested could generate $9–12 million in adjusted EBITDA.

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