ETHZilla deploys real-world asset tokenization strategy with investment in prefabricated houses

The treasury management firm focused on Ethereum is executing an ambitious strategic shift towards the tokenization of real-world assets (RWA), mobilizing capital across multiple asset classes including $15 million prefabricated houses, according to regulatory documents and official communications.

Multiple pathways for tokenization channeling

ETHZilla has revealed plans to bring various types of assets with predictable cash flows onto the blockchain. The company took a 15% equity stake in Zippy, a lender specializing in financing for prefabricated houses, with the goal of tokenizing those credits as compliant and negotiable instruments on the blockchain.

In parallel, ETHZilla acquired a stake in Karus, an automotive financing platform, aiming to transfer auto loans to blockchain infrastructure. These moves represent two segments of a broader portfolio of tokenized assets that the company seeks to build.

Venture into aerospace assets

The landscape expanded when filings submitted to the U.S. Securities and Exchange Commission (SEC) revealed that ETHZilla acquired two CFM56-7B24 aircraft engines for $12.2 million through its newly created subsidiary, ETHZilla Aerospace LLC.

The engines are being leased to a major airline under a scheme managed by Aero Engine Solutions, which charges a monthly management fee. The agreement includes a buy-sell option allowing either party to demand the transfer of the engines for $3 million each at the end of the lease, provided they maintain proper operational conditions.

For specialized companies in this segment such as AerCap, Willis Lease Finance Corporation, and SMBC Aero Engine Lease, leasing jet engines is an established business. Airlines require spare parts to ensure operational continuity in case of main engine failures. The industry currently faces a significant shortage of large engines, with IATA estimates indicating that airlines will need to spend approximately $2.6 billion on additional spare engines in 2025.

Context of pressure on cryptocurrency treasuries

This pivot occurs in a context where multiple digital treasury management companies face increasing pressure. Many that accumulated aggressively during previous cycles are now trading well below their net asset value (NAV).

ETHZilla itself proceeded to sell $40 million in ETH during October to fund a share buyback program. Later, in December, it sold another $74.5 million in Ethereum to redeem outstanding debt. Its stock has fallen nearly 97% from its highs reached in August. The current Ethereum price hovers around $2.45 per token, reflecting the challenging market dynamics.

Regulated partnership and launch schedule

ETHZilla’s tokenization strategy has a key institutional partner: Liquidity.io, a regulated broker-dealer operating as a registered Alternative Trading System (ATS) with the SEC. This partnership provides the necessary regulatory compliance framework to structure these offerings.

In a shareholder communication during December, the company outlined its purpose to “build a scalable tokenization pipeline across asset classes with predictable cash flows and global investor demand.” The company expects to list the first tokenized asset offerings during the first quarter of the year, including prefabricated house mortgage credits and auto loans.

Market projections for asset leasing

The aerospace asset leasing sector shows growth prospects. According to TechSci Research analysis, the global aircraft engine leasing market is projected to grow from $11.17 billion in 2025 to $15.56 billion in 2031, representing a compound annual growth rate of 5.68%.

This expansion provides context for understanding why a cryptocurrency treasury management firm would seek to diversify into physical asset leasing that can later be tokenized, creating new opportunities at the intersection of traditional finance and blockchain. The move reflects a broader calculation on how to capitalize on emerging institutional demand for yield instruments anchored in prefabricated houses, vehicles, and aerospace assets.