The Cayman Islands, known for its beautiful beaches and luxurious resorts, may soon become a new haven for Bitcoin holders looking to invest in real estate. Bitcoin banking firm Ledn, registered as a virtual assets service provider (VASP) with the Cayman Islands Monetary Authority, has partnered with local real estate agency Parallel to offer BTC-backed loans for property purchases on the islands.
Ledn CEO Adam Reeds explained that Parallel will accept BTC-backed loans from Ledn as a means of financing real estate purchases, making it an exclusive partnership. If buyers or sellers prefer fiat currency, Parallel will handle the conversion, while Ledn’s portion of the transaction will be paid in BTC or US dollar-backed stablecoins.
One of the attractive features of this partnership is that cryptocurrency holders can use their BTC as collateral for loans without selling a portion of their holdings. This means that as the value of BTC increases, the loan-to-value ratio decreases, allowing buyers to benefit from both their appreciating property and their supporting asset.
Parallel, which is also registered as a VASP with the Cayman Islands Monetary Authority, has previous experience in facilitating cryptocurrency-based property transactions. In fact, the real estate agency sold a $10 million property entirely in cryptocurrency in December 2022. Both Ledn and Parallel must comply with comprehensive regulatory requirements as part of their registration with the local monetary authority.
While the concept of obtaining residency through cryptocurrency investments is not entirely new, the Cayman Islands could become an attractive destination for investors looking for a Bitcoin-friendly country. Other countries, such as Vanuatu, have already accepted Bitcoin as a means of payment for obtaining citizenship by investment. Portugal, Malta, and El Salvador have also emerged as relatively crypto-friendly countries, but none of them currently offer the option to invest directly in Bitcoin for residency purposes.
In the Cayman Islands, investors can qualify for permanent residency by making real estate investments worth over $2.4 million. This presents an opportunity for Bitcoin holders to not only diversify their investment portfolio but also gain the benefits of living in a tax haven with beautiful beaches and a stable economy.
The partnership between Ledn and Parallel opens up new possibilities for Bitcoin holders who are seeking to invest in real estate and potentially become residents of the Cayman Islands. By leveraging their BTC as collateral, investors can participate in the island’s property market without having to sell their cryptocurrency assets. This unique offering, combined with the stunning natural beauty and favorable tax environment of the Cayman Islands, may make it an appealing choice for Bitcoin investors looking to secure their future in paradise.
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