"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,” said ETHZilla Chairman and CEO McAndrew Rudisill, in a statement.
“The Eurus Aero Token I expands investment access and modernizes fractional asset ownership in markets that have historically been available only to institutional credit and private equity,” he added.
An ETHZilla representative told Decrypt that the firm cannot disclose the airline in question due to the terms of the lease.
The token, available to accredited investors through the token marketplace of Liquidity.io, has a targeted return rate of around 11% if token holders hold throughout the full term of the leases, which extend into 2028. A disclaimer indicates that actual returns may “differ materially.”
As it stands, each month cash flows generated by the leased engines—two CFM56 commercial jet engines—will be distributed to token holders on-chain.
“Each token is secured by a collateral package consisting of aircraft engines, related lease receivables, reserves, and insurance proceeds pursuant to the transaction agreements with ETHZilla Aerospace serving as the issuer under ETHZilla's management,” the firm’s statement reads.
Its latest tokenization effort is expected to expand, as well, with the firm looking to offer tokenized access to manufactured home loans and car loans via existing partnerships.
ETH is down nearly 40% in the last 30 days, recently changing hands around $1,919.
