On August 24, Ledn, a cryptocurrency lending firm, teamed up with Parallel, Cayman’s leading crypto real estate agent, enabling crypto enthusiasts to acquire Cayman Islands property using their digital assets.
This collaboration offers crypto investors the advantage of not having to convert or sell their cryptocurrencies and simultaneously provides an avenue for qualifying for a “Golden Visa.”
Established in 2018, Ledn is a global provider of digital asset financial services. It secured its designation as a Virtual Asset Service Provider (VASP) in May, under the auspices of the Cayman Islands Monetary Authority (CIMA). Since its inception, Ledn has expanded its services and regions.
On September 1, 2022, Parallel Limited made headlines by becoming the Cayman Islands’ first crypto real estate escrow provider. It played a pivotal role in the territory’s inaugural cryptocurrency-based real estate transaction, which involved a private home sold for over $5 million. Following this, Parallel was instrumental in another landmark sale, where a house was bought for more than US$10 million using only cryptocurrency.
Both Ledn and Parallel operate under CIMA’s regulations for Virtual Asset Service Providers, reflecting the Cayman Islands’ commitment to fostering responsible crypto industry growth.
Adam Reeds, Ledn’s CEO, remarked on the partnership, emphasizing Parallel’s impressive track record in crypto real estate transactions.
This collaboration allows wealthy cryptocurrency holders to explore a promising real estate market. Laura Birrell, CEO of Parallel, mentioned that clients now have the flexibility to retain their cryptocurrency while also investing in luxury Cayman properties.
Investors can use their Bitcoin as collateral for Ledn loans, which they can then use to purchase real estate via Parallel. The loan conditions entail a 50% loan-to-value ratio and an annual interest rate of 12.9% APR.
Moreover, Ledn and Parallel’s joint initiative offers the “Golden Visa” program, giving crypto investors an opportunity to buy real estate and qualify for the Cayman Islands’ citizenship-by-investment scheme. Such programs are operational in 22 countries, including Spain, the U.S., Greece, among others.
In the Cayman Islands, the fastest path to permanent residency necessitates a minimum real estate investment of $2.4 million. The Cayman Islands, with no limitations on foreign property ownership and absence of several taxes, is attractive to foreign investors.
However, the availability of properties in the Cayman Islands has been decreasing annually by 15%, causing a surge in demand and property prices. For individuals with significant crypto assets, this partnership offers an entry into a thriving real estate market.