ETHZilla Acquires 20% Stake in AI Lending Platform Karus for $10M to Pioneer Auto Loan Tokenization

In a major strategic move, blockchain investment firm ETHZilla has finalized a $10 million deal to acquire a 20% stake in Karus, an AI-powered lending platform. The primary objective of this investment is to fund the development and launch of a pioneering initiative to tokenize auto loans on the blockchain. This partnership aims to leverage Karus's advanced artificial intelligence for credit scoring and risk assessment, combining it with ETHZilla's expertise in blockchain infrastructure. The tokenization of auto loans is expected to create a new, liquid digital asset class, making vehicle financing more accessible and efficient. It represents a significant step towards bridging traditional finance (TradFi) with decentralized finance (DeFi). The integration seeks to enhance transparency, reduce operational costs, and open up the auto loan market to a broader pool of investors through digital tokens. This move highlights the growing trend of asset tokenization within the cryptocurrency and fintech sectors.