Bitcoin-focused financial services firm Ledn has established connections with the Cayman Islands, offering a pathway for crypto users to secure real estate “golden visas.”
The Cayman Islands, known for its picturesque beaches, could potentially extend its appeal to Bitcoin (BTC) holders, allowing them to become residents through BTC-backed loans utilised for real estate investments.
Ledn, a Bitcoin banking company registered as a virtual assets service provider (VASP) with the Cayman Islands Monetary Authority, is enabling Bitcoin holders to utilise their BTC holdings as collateral for loans aimed at real estate investments within the islands.
This approach is just one avenue through which individuals interested in residing in the Cayman Islands can explore the possibility of gaining citizenship. By investing over $2.4 million in real estate within the Cayman Islands, a buyer becomes eligible for permanent residency.
Adam Reeds, the CEO of Ledn, elaborated on a new collaboration with local real estate agency Parallel, which has also facilitated several property sales involving cryptocurrencies in the Cayman Islands.
Reeds explained, “Ledn will offer crypto-backed loans to real estate buyers in the Caymans, which Parallel will accept as a financing option for purchases. Parallel will exclusively accept funds borrowed through Ledn’s platform.”
According to Reeds, if a buyer or seller prefers fiat currency over cryptocurrency payment, Parallel manages the conversion process. Meanwhile, Ledn’s part of the transaction remains fiat-free and is settled in BTC or US dollar-backed stablecoins.
Reeds highlighted that Parallel specialises in cryptocurrency-centric real estate transactions, enabling buyers to finance property purchases without involving traditional fiat currencies.
While it is possible for cryptocurrency holders to directly purchase properties with crypto in the Cayman Islands through Parallel, Reeds emphasised the advantage of leveraging BTC holdings as collateral without selling any portion.
He further explained, “If or when BTC appreciates, your loan-to-value ratio decreases, leading to appreciation of both your property and the asset you’re using as collateral.”
Since Parallel has previously facilitated real estate sales through cryptocurrency transactions, both companies have observed demand for using this service to fund substantial property deals.
Parallel executed a $10 million property sale entirely in cryptocurrency in December 2022. The agency is also registered as a VASP with the Cayman Islands Monetary Authority, enabling it to facilitate cryptocurrency-related transactions.
Both Ledn and Parallel are obliged to adhere to comprehensive regulatory requirements as part of their registration with the local monetary authority.
While the concept of obtaining residency through cryptocurrency investment is not entirely new, Vanuatu claims to be the first country accepting Bitcoin for citizenship by investment. Various other nations, including Portugal, Malta, and El Salvador, have positioned themselves as cryptocurrency-friendly destinations, but investing directly in Bitcoin to attain residency remains a unique offering.