ETHZilla takes stake in Karus to tokenize AI-modeled auto-loan portfolios
ETHZilla acquired a 20% stake in Karus to integrate its AI underwriting models for issuing tokenized auto-loan portfolios.Summary
Crypto treasury company ETHZilla (ETHZ) has acquired a 20% fully diluted stake in automotive-finance AI startup Karus for $10 million ($3 million cash, $7 million in ETHZilla stock). This strategic move allows ETHZilla to integrate Karus’s underwriting AI, trained on extensive historical auto-loan data, into its blockchain stack to issue tokenized auto-loan portfolios with onchain settlement, starting in early 2026. The deal grants ETHZilla a board seat and access to Karus’s pipeline of loan portfolios from dealers, banks, and credit unions. ETHZilla estimates this venture could generate $9 to $12 million in adjusted EBITDA for every $100 million deployed. This initiative aims to open high-quality, income-generating auto loan assets, which traditionally require complex securitization, to a global investor base for the first time, tapping into the significant US asset-backed securities market.
(Source：Cointelegraph)