ETHZilla Corporation (NASDAQ: ETHZ), a Palm Beach, Florida-based fintech focused on developing an Ethereum-based infrastructure for tokenized real-world assets, has acquired a portfolio of manufactured and modular home loans from Zippy Manufactured Home Credit Fund I LP.
Through its newly formed wholly owned subsidiary, ETHZilla Modular Mortgage LLC, the company acquired 95 manufactured and modular home loans, together with the first-lien mortgages securing the loans, for a total purchase price of approximately $4.7 million.
ETHZilla announced it will tokenize the loan portfolio into “a cash-flow-generating manufactured home loan token,” using the Ethereum Layer 2 infrastructure to support on-chain asset tracking and automated cash-flow distribution. The company plans to launch the token through the Liquidity.io ecosystem either later this month or early next month.
Last December, ETHZilla acquired approximately 15% of the fully diluted ownership of Zippy Inc., the parent company of Zippy Manufactured Home Credit Fund I LP. The loans will continue to be serviced by Zippy Loans LLC, a wholly owned subsidiary of Zippy.
The acquired loan portfolio is expected to generate an annualized yield of approximately 10.36%, reflecting contractual interest payments from a seasoned pool of residential credit assets with recurring cash-flow characteristics.
“This transaction represents a natural extension of the tokenization strategy we’ve been building, and underscores ETHZilla’s disciplined approach to bringing established, cash-flow-generating assets on-chain,” said McAndrew Rudisill, chairman and CEO of ETHZilla. “Manufactured housing loans offer predictable cash flows and strong underlying collateral, which we believe makes them well suited for tokenization within a regulated, transparent structure.”
