On August 24, a fresh collaboration in the crypto world sparked enthusiasm when cryptocurrency lender, Ledn, entered into a partnership with Cayman’s leading crypto real estate broker, Parallel. This notable partnership not only opens up a chance for crypto investors to buy real estate in the Cayman Islands using digital assets but also paves the way to “Golden Visa” qualification without the need for currency conversion or crypto selling.
Since its inception in 2018, Ledn, a global digital asset provider, has continually evolved its services. As a Virtual Asset Service Provider (VASP) registered and regulated by the Cayman Islands Monetary Authority (CIMA), Ledn offers savings accounts and loans to clients across 130+ countries. Its continued expansion and increasing list of services places it at the forefront of innovation in the crypto industry.
Meanwhile, Parallel thrives in its unique niche and recently reached a significant milestone on September 1, 2022. Earning recognition as the pioneering crypto real estate escrow provider in the Cayman Islands, Parallel added another feather in its cap by facilitating the territory’s first cryptocurrency sale – a private residence worth over $5 million. Following this commendable achievement, Parallel reported the second cryptocurrency purchase, a private home worth over US$10 million paid for entirely with crypto.
These recent highlights of the partnership between Ledn and Parallel give digital asset owners an exciting opportunity. By leveraging their Bitcoin holdings as collateral for Ledn loans, they can draw on these funds for real estate purchases through Parallel. No longer are investors required to choose between holding their crypto assets and venturing into luxury real estate. With a Ledn loan’s 50% loan-to-value ratio and a 12.9% APR, they can comfortably do both.
Interestingly, the collaborative effort by Ledn and Parallel offers “Golden Visa” opportunities in Cayman Paradise. Due to changes in immigration law, the quickest path to permanent residency in the Cayman Islands requires a minimum of a $2.4 million real estate investment. This also meets the criteria for the Cayman Islands’ citizenship-by-investment program, prompting crypto investors to delve into real estate.
Although the property availability in the Cayman Islands has dropped by 15% annually, contributing to demand and escalating home prices, it’s worth mentioning that Cayman Islands’ favorable property law aspects may add extra allure. With no restrictions on foreign ownership or property, capital gains, inheritance, or recurring taxes, this Caribbean paradise remains a top pick for foreign investors.
This partnership, though innovative, may not be without possible setbacks or risks associated with digital currencies and virtual assets. However, for many crypto enthusiasts, the opportunity to blend digital asset ownership with real estate investment may outweigh any potential downsides. Specifics of such ventures remain dependent on individual circumstances, financial expertise, crypto market volatility, and general real estate market conditions.