Tokenization of aviation assets
The publicly traded Ethereum treasury firm ETHZilla, known for managing the Ethereum treasury, has decided to diversify its business. Now it is engaged in tokenizing ownership rights to jet engines that it leases to a major air carrier.
This strategy may be driven by the drop in the Ethereum rate, which has fallen by more than 60% since the beginning of 2022. This negatively affects companies whose business model is tied to cryptocurrencies. Therefore, ETHZilla decided to diversify its portfolio, going beyond the purely cryptocurrency theme.
Tokenization of physical assets is one of the promising areas of blockchain technology application. It allows dividing the ownership right to objects into multiple tokens and attracting investors' funds. In the case of jet engines, this provides an opportunity to generate a constant passive income from leasing them out.
This move by ETHZilla may turn out to be successful. The aviation industry is recovering from the COVID-19 pandemic, and the tokenization of assets is becoming an increasingly popular tool for attracting investments.