The Cayman Islands, known as a tropical retreat, are now opening up to Bitcoin investors, allowing them to purchase property using cryptocurrencies. With the help of financial firms like Ledn, digital currency enthusiasts can now use BTC as collateral for property loans, opening the door to permanent residency.
Long associated with tropical luxury and privacy, the Caymans are now becoming an attractive spot for Bitcoin holders, thanks to new real estate investment opportunities using this cryptocurrency. Financial company Ledn, registered by the Cayman Islands Monetary Authority as a Virtual Asset Service Provider (VASP), offers Bitcoin owners the opportunity to use their BTC as collateral for property investment loans in the archipelago.
However, this is just one of the options for potential new residents of the archipelago who want to acquire citizenship. Investments exceeding $2.4 million in Cayman Islands real estate entitle the buyer to permanent residency.
In an interview with Cointelegraph, Ledn’s CEO, Adam Reeds, detailed a new partnership with local real estate agency Parallel, which has also enabled a series of property sales based on cryptocurrencies in the Cayman Islands. As Reeds explained, Ledn will provide buyers in the Cayman Islands with loans secured by cryptocurrencies, which Parallel will accept as payment for property purchases. Importantly, Parallel only accepts loans granted by Ledn, making their collaboration unique.
Regarding payments, Parallel can convert to traditional currency if the buyer or seller chooses this option. Meanwhile, Ledn’s involvement in each transaction will be entirely free from traditional currencies, paid either in BTC or in US dollar-based stable coins.
The collaboration with Parallel also provides the opportunity for cryptocurrency holders to pay for properties using cryptocurrency. Importantly, investors can secure their BTC loans without the need to sell part of their portfolio.
Parallel had previously sold properties using cryptocurrencies. Reeds emphasized that both companies noticed a growing demand for such services in financing significant real estate transactions. A property worth $10 million was recently sold, entirely paid for in cryptocurrency.
The idea of obtaining residency through cryptocurrency investments is not new. Vanuatu claims to be the first country to accept Bitcoin as a payment for citizenship through investment. Other countries, such as Portugal, Malta, and El Salvador, are also crypto-friendly, but direct investments in Bitcoin for residency or citizenship applications are not yet possible.
As cryptocurrencies evolve and become more widely accepted worldwide, countries and businesses are looking for innovative solutions to attract investors. The Caymans, with their new approach to property investment using Bitcoin, are an intriguing example of this trend, offering new opportunities for the global cryptocurrency community.
Photo by Marc Babin on Unsplash
