“By investing in Zippy, ETHZilla is turning traditional housing loans into on-chain opportunities, bridging DeFi and real-world assets like never before.”
,Stated by McAndrew Rudisill, CEO, ETHZilla
The acquisition of a 15% fully diluted ownership share in Zippy, Inc., a digital lending platform that specialises in manufactured home loans, was announced today by ETHZilla Corporation (NASDAQ: ETHZ).
It is a prominent blockchain and decentralised finance (DeFi) company. The $21.1 million deal, which represents the company’s second strategic purchase in a week, consists of $5 million in cash and $16.1 million in ETHZilla ordinary stock.
The investment is a component of ETHZilla’s larger plan to move manufactured home loans onto the blockchain by using tokenisation to transform real-world assets (RWA) into digital assets that are ready for the blockchain.
The $14 billion manufactured housing sector is supported by Zippy’s platform, which links buyers and sellers via a smooth online experience.
According to McAndrew Rudisill, Chairman and CEO of ETHZilla, “Zippy has built an institutional-grade lending and servicing platform which allows large-scale investor participation and efficient on-chain distribution.”
“Our objective of increasing tokenisation capabilities across residential lending is in line with this acquisition.”
As part of the deal, ETHZilla will add a director to Zippy’s board, and for 36 months, only the Liquidity.io and Satschel platforms will be used for tokenisation, digital asset issuance, and blockchain infrastructure.
This advances ETHZilla’s goal of bringing a variety of real-world assets onto the Ethereum blockchain and comes after its previous investments in Karus and the parent firm of Liquidity.io.
ETHZilla, which is presently valued at $224 million, is shifting from biotech to digital asset management despite recent poor EBITDA results, strengthening its commitment to DeFi innovation and the tokenisation of residential financing.
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