ETHZilla takes stake in Karus to tokenize AI-modeled auto-loan portfolios

Overview

ETHZilla has made a strategic move by acquiring a stake in Karus, a company that specializes in AI underwriting and loan origination. This partnership is set to enable ETHZilla to offer auto credit on the blockchain in the future.

Details of the Deal

The agreement between ETHZilla and Karus provides ETHZilla with access to Karus’s advanced AI underwriting engine. This technology is crucial for evaluating loan applications and assessing credit risk, which is essential for the auto-loan market. Additionally, the deal allows ETHZilla to tap into Karus’s established loan origination network, enhancing its ability to facilitate auto loans.

This collaboration is significant as it positions ETHZilla to enter the auto credit market in a novel way, leveraging blockchain technology to streamline the lending process. The expected launch of these onchain auto credit offerings is planned for 2026.

Impact on the crypto market

• ETHZilla’s entry into the auto credit space could attract more traditional financial institutions to explore blockchain applications.
• The use of AI in underwriting may enhance the efficiency and accuracy of loan approvals in the crypto sector.
• This partnership may encourage further innovation in the intersection of blockchain technology and traditional lending practices.
• The move signifies growing interest in tokenizing financial products, potentially leading to increased adoption of crypto-based financial services.
• The deal highlights the evolving landscape of the crypto market, where traditional financial services are increasingly integrated with blockchain solutions.

Updated: 12/3/2025, 6:37:33 PM