ETHZilla (ETHZ), an Ethereum-focused digital asset treasury company, is taking a further push towards tokenization, acquiring a $4.7 million portfolio of manufactured modular mortgages.
According to an announcement shared with CoinDesk on Thursday, the company plans to tokenize its 95-loan portfolio on the Ethereum Layer 2 network, with the aim of turning the loans into digital tokens that generate cash flow that can be utilized via Liquidity.io, a regulated broker-dealer and trading system.
The loan is secured by a first lien mortgage and is expected to have an annual yield of approximately 10%, the company said.
“This transaction represents a natural extension of the tokenization strategy we have been building,” said McAndrew Rudisill, Chairman and CEO of ETHZilla.
“We believe manufactured mortgages are well-suited for tokenization within a regulated and transparent structure as they offer predictable cash flows and strong underlying collateral.”
ETHZilla's move to tokenization comes in the wake of a sharp decline in its core crypto holdings. The company's stock price has plummeted by more than 90% since soaring to $107 in August 2025, with more than $110 million sold. $ETH Last year, the funds were used to buy back shares and repay debt.
In a letter to shareholders in December, the company outlined plans to create a regulated framework for tokenizing everything from aircraft engines to car loans. The newly purchased mortgage portfolio follows ETHZilla's previous investment in housing lender Zippy, and a similar acquisition of two jet engines, which the company also plans to tokenize.
