ETHZilla Turns to Real-World Assets With $4.7M Mortgage Deal

Ethereum-focused asset firm ETHZilla has taken a bold step toward real-world asset tokenization with the acquisition of a $4.7 million home loan portfolio.

Key Takeaways

• ETHZilla has acquired 95 manufactured and modular home loans totaling $4.7 million
• The firm plans to tokenize these loans on an Ethereum Layer 2 network
• Loans are expected to yield approximately 10.36 percent annually and will be tradable via Liquidity.io
• This move marks a major shift in ETHZilla’s strategy following a sharp drop in its crypto holdings

What Happened?

ETHZilla Corporation, a financial technology firm known for building Ethereum-based infrastructure for asset tokenization, announced it has purchased a $4.7 million portfolio of manufactured and modular home loans. These 95 loans, secured by first-lien mortgages, will be tokenized on an Ethereum Layer 2 platform and offered to investors as yield-generating digital assets.

ETHZilla Enters Real Estate Tokenization

ETHZilla’s acquisition comes from Zippy Manufactured Home Credit Fund I L.P., deepening an existing relationship with Zippy, a company specializing in manufactured home lending. The loans are expected to deliver an annualized yield of around 10.36 percent, based on contractual interest payments from a seasoned pool of residential credit assets.

ETHZilla will tokenize the portfolio into what it describes as a “manufactured home loan token”, built to generate recurring cash flow. These tokens will be launched via Liquidity.io, a regulated digital asset marketplace, with a planned release in late February or early March. To facilitate this, ETHZilla has formed a new subsidiary, ETHZilla Modular Mortgage LLC, which now holds the loan assets.

The company confirmed that Zippy Loans, LLC will continue to service the loans, ensuring continuity and leveraging Zippy’s expertise in manufactured housing finance.

Strategic Shift After Crypto Downturn

The decision to focus on real-world assets follows a dramatic drop in ETHZilla’s crypto holdings, which once formed the core of its balance sheet. Since peaking at $107 per share in August 2025, ETHZilla’s stock has declined over 90 percent. In response, the company liquidated more than $110 million in ETH last year to fund stock buybacks and repay debt.

This latest loan acquisition builds on earlier moves to diversify beyond volatile crypto assets. In December 2025, ETHZilla acquired a 15 percent stake in Zippy, Inc., giving it upstream access to loan origination, servicing, and portfolio management in the manufactured housing space.

Alongside the home loans, ETHZilla also recently purchased two aircraft engines (CFM56-7B24) currently leased to a major air carrier. These too are expected to be tokenized and made available on Liquidity.io. The company views both transactions as part of a scalable, repeatable tokenization framework for multiple real-world asset classes.

Building a Regulated Tokenization Platform

ETHZilla’s broader goal is to develop a regulated and transparent infrastructure for tokenizing traditionally illiquid financial products. These include auto loans, aircraft engines, and now residential mortgages. By using Ethereum Layer 2 networks, ETHZilla hopes to enable automated cash flow tracking, on-chain asset management, and global access to assets that were once limited to large institutional players.

Chairman and CEO McAndrew Rudisill said:

CoinLaw’s Takeaway

I find this move by ETHZilla both timely and telling. After getting hammered by the crypto market’s volatility, it is smartly pivoting to real-world assets that offer stable returns and tangible value. Tokenizing manufactured home loans may not sound glamorous, but it taps into a reliable sector with steady income. In my experience, these are exactly the kinds of boring assets that can power long-term blockchain adoption. ETHZilla’s strategy to blend regulated finance with blockchain isn’t just a hedge. It’s a redefinition of where real value lives in crypto today.

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