Bitcoin-backed property investment becomes new avenue for Cayman Islands residency
The Cayman Islands has long been an idyllic beach getaway for tourists, but the archipelago could soon welcome Bitcoin (BTC) holders as new residents through BTC-backed loans used to invest in real estate.
Bitcoin banking firm Ledn, which is registered with the Cayman Islands Monetary Authority as a virtual assets service provider (VASP), is providing an avenue for Bitcoin holders to use their BTC as collateral for loans to invest in real estate on the islands.
This is just one avenue that prospective new residents of the islands could take to obtain citizenship, with investments over $2.4 million in real estate in the Cayman Islands qualifying a buyer for permanent residency.
Related: Noted tax haven Cayman Islands sees new bills to bring local crypto to FATF’s heel
Speaking directly to Cointelegraph, Ledn CEO Adam Reeds unpacked a new partnership with local real estate agency Parallel, which has also facilitated a number of cryptocurrency-based property sales in the Cayman Islands.
According to Reeds, Parallel handles conversion to fiat currency if either a buyer or seller prefers the option over a cryptocurrency payment. Meanwhile, Ledn’s portion of any transaction will be fiat-free, paid in either BTC or United States dollar-backed stablecoins.
It is also possible for cryptocurrency holders to pay for a property with crypto in the Cayman Islands through Parallel. Reeds, however, highlighted a potential draw card in that investors can leverage their BTC holdings as collateral without selling a portion.
Given that Parallel has previously sold real estate in cryptocurrency-facilitated transfers, Reeds added that both companies have seen demands for the service to finance significant property transactions.
The real estate
Read more on cointelegraph.com
