Investing in the Cayman Islands Through Bitcoin-Backed Loans
The Cayman Islands, a popular beach getaway for tourists, could soon welcome Bitcoin (BTC) holders as new residents through BTC-backed loans used to invest in real estate. Ledn, a Bitcoin banking firm registered with the Cayman Islands Monetary Authority as a virtual assets service provider (VASP), is offering an opportunity for Bitcoin holders to use their BTC as collateral for loans to invest in real estate in the islands.
Moreover, those who invest over $2.4 million in real estate in the Cayman Islands qualify for permanent residency. Ledn’s CEO Adam Reeds recently spoke with Cointelegraph about the company’s partnership with local real estate agency Parallel, which has also facilitated a number of cryptocurrency-based property sales in the Cayman Islands.
Cryptocurrency and Web 3.0 Companies
Parallel and Ledn are two companies that are working on Web 3.0, allowing cryptocurrency holders to pay for real estate with crypto. 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 to invest in Web 3.0 in the Cayman Islands through Parallel. Investors can leverage their BTC holdings as collateral without selling a portion.
Given that Parallel has previously sold real estate in cryptocurrency-facilitated transfers, both companies have seen demands for the service to finance significant property transactions. One example is a $10 million property sold in December 2022, which was paid for entirely in cryptocurrency. Parallel is also registered as a VASP with the Cayman Islands Monetary Authority, allowing it to facilitate cryptocurrency transactions.
Cryptocurrency and Web 3.0
Both Ledn and Parallel must satisfy the strict regulations of the local monetary authority in order to register.
The idea of obtaining residency through cryptocurrency investments is not completely new. Vanuatu claims to be the first country to accept Bitcoin as a form of payment for citizenship by investment.
Many other countries have become crypto-friendly destinations in order to obtain citizenship. Portugal, Malta and El Salvador have all become relatively crypto-friendly, but it is still not possible to directly invest in Bitcoin to be eligible for residency.
Investing in Web 3.0 is a topic of much discussion. Could you invest in Web 3.0? What are the best companies working on Web 3.0? What are the crypto Web 3.0 projects? What crypto Web 3.0 coins are available? These are all questions that people have when it comes to Web 3.0.
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