ETHZilla has changed the supply of tokenized jet engines.
Crypto-treasury company Itzilla has launched a token to leverage the equity of Jet Engines, which the company acquired last month, into tokenized assets.
EtZilla announced on Thursday that the token, called Urus Aero Token 1, is being run by its new subsidiary ETHZilla Aerospace and will be powered by two commercial jet engines leased to a “major US airline”.
The company priced each token at $100, with a minimum purchase of 10 tokens. ETHZilla said it is targeting an 11 percent rate of return over the full term of the motor lease, which runs until 2028.
ETHZilla, formerly 180 Life Science Corp., is a clinical-grade biotech company that bought and held Ether (ETH) in July amid the boom in emerging crypto-treasuries at the time.
Itzilla Chairman and CEO McAndrew Rudisil said the project will “broaden access to investment and improve fractional ownership in markets that have historically been limited to institutional credit and private equity.”
“Offering an engine-backed token will serve as a strong leverage for one of the largest and most profitable U.S. airlines to implement aviation assets on blockchain infrastructure with contractual cash flow and global investment demand,” he said.
ETHZilla is evolving from a crypto treasury.
Rudisil said in December that Etzilla is moving away from buying and holding ETH and aims to build a business that brings assets on-chain through tokenization.
Crypto treasury companies experienced great growth and hype last year, but enthusiasm has since cooled in the market.
ETHZilla sold some of its ETH storage last year and bought the two jet engines in January for a total of $12.2 million.
As part of its ongoing tokenization push, EtZilla plans to launch tokens for more asset classes, including home and car loans, according to the company's announcement.
Some crypto execs predict that tokenized RWAs will grow significantly by 2026, driven by emerging economies struggling with capital formation and attracting foreign investment.
More than $24 billion in RWA is estimated to be on the chain as of Friday with more than 846,808 holders, according to RWA.xyz.
Ether descends from the previous high level
In a Securities and Exchange Commission filing in September, ETZilla said it held 102,246 ether at an average purchase price of $3,948, which was $443 million at the time.
Related: ‘Horse barn leaves:' ETHZilla big bet on Ethereum's stablecoin game
Ether has fallen in line with the rest of the crypto market and has been hovering between $1,872 and $2,130 for the past seven days, according to CoinGecko.
Strategic Ether Inventory lists Etzilla as holding more than 93,000 units in Ether, worth more than $188 million. However, CoinGecko estimates that the company's stock is around 69,802 and worth around $136 million.
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