ETHZilla has acquired two CFM56-7B24 aircraft engines worth $12.2 million through a newly formed aerospace division. The Ethereum treasury firm finalized the purchase after liquidating $114.5 million in ETH over recent months. The engines are actively leased to a major airline under management contracts.
This acquisition signals the company's strategic pivot toward tokenizing real-world assets on blockchain networks. The move comes as digital asset treasury companies face mounting pressure with shares trading below their cryptocurrency holdings' net value.
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Aerospace Division Completes Strategic Engine Purchase
ETHZilla executed the transaction through ETHZilla Aerospace LLC, according to a Friday SEC filing. The engines operate under Aero Engine Solutions' management with monthly fee arrangements. The agreement includes buy-sell options upon lease expiration.
Both parties can trigger purchase or sale requirements at $3 million per engine when condition standards are satisfied. Airlines lease spare engines to maintain operations during maintenance cycles or primary engine failures.
Industry leaders AerCap and Willis Lease Finance Corporation dominate this established sector. The International Air Transport Association forecasts airline members will allocate approximately $2.6 billion toward spare engine leases in 2025.
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TechSci Research projects the global aircraft engine leasing market will surge from $11.17 billion in 2025 to $15.56 billion by 2031. This represents a compound annual growth rate of 5.68 percent. Supply constraints for large engines currently favor lessors.
ETHZilla's stock has plummeted roughly 97 percent from its August peak amid crypto market turbulence. The firm sold $40 million in ETH during October to finance a stock buyback initiative. Another $74.5 million in Ethereum was liquidated in December for debt settlement.
Real-World Asset Tokenization Pipeline Expands
The engine acquisition connects to ETHZilla's broader tokenization framework outlined in December shareholder updates. The company partnered with Liquidityio, a regulated broker-dealer and SEC-registered alternative trading system.
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This collaboration targets tokenization across multiple asset classes including aircraft engines, auto loans, and manufactured home loans. ETHZilla previously secured a 15 percent stake in Zippy, a manufactured home loan provider. The investment includes plans to convert those loans into compliant tradable instruments.
The company obtained equity in auto finance platform Karus with similar blockchain integration goals. On X, the firm detailed its tokenization vision.
"We're building a scalable tokenization pipeline across asset classes with predictable cash flows and global investor demand," ETHZilla stated.
The first tokenized asset offerings are scheduled for Q1 2026 launch. This strategy marks a shift from pure cryptocurrency treasury management toward blockchain-based asset tokenization. ETHZilla aims to create onchain versions of traditional financial instruments with established revenue streams.
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The regulated partnership structure addresses compliance requirements for securities offerings. The aircraft engine sector presents growth opportunities as airlines expand fleets and manage operational costs.
3 Key Takeaways:
ETHZilla acquired two aircraft engines for $12.2M after liquidating $114.5M in ETH holdings recentlyAircraft engine leasing market projected to grow from $11.17B to $15.56B by 2031 at 5.68% CAGR rateFirst tokenized asset offerings scheduled for Q1 2026 launch through regulated partnership structure
#ETHZilla #Ethereum #Tokenization #RealWorldAssets
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