Ether finance company ETHZilla (ETHZ) announced that it has acquired 20% of Karus, an AI-driven car loan platform, in a deal valued at $10 million.
The agreement marks ETHZilla's entry into the U.S. asset-backed securities market by using blockchain to tokenize real-world trust, the company said in a press release.
Karus specializes in AI models that analyze loan-level risk using over 20 million historical auto loan outcomes and thousands of real-time variables.
ETHZilla plans to integrate this technology into its Ethereum-based infrastructure to tokenize loans and turn predictive credit data into tradable on-chain assets. The companies say the first tokenized loan portfolio will be available by early 2026.
The transaction consists of $3 million in cash and $7 million in ETHZilla stock. ETHZilla will also gain access to Karus' network of more than 20,000 auto dealerships, banks and credit unions in the United States, the companies said.
Calus, which is backed by investors including Peter Thiel's Tacora Capital, has processed more than $5 billion in auto loans through its decision engine.
ETHZilla stock has risen nearly 5% since the opening bell to $11.17. The company holds 94,060 ETH in its treasury, worth approximately $290 million.
