- August 27, 2023
- Posted by: [email protected]
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Bitcoin financial services firm Ledn is forging a connection with the Cayman Islands that could offer crypto enthusiasts the opportunity to secure residency through Bitcoin-backed loans used to invest in real estate – a pathway often referred to as “golden visas.” The Cayman Islands, renowned for its scenic beaches and tourist allure, is considering opening its doors to Bitcoin holders as potential residents through this innovative approach.
Ledn, registered as a virtual assets service provider (VASP) with the Cayman Islands Monetary Authority, is at the forefront of enabling Bitcoin holders to utilize their BTC holdings as collateral for loans earmarked for real estate investment in the archipelago. This initiative offers one of several avenues for aspiring residents to achieve citizenship, with investments exceeding $2.4 million in Cayman Islands real estate qualifying individuals for permanent residency.
In a significant development, Ledn has established an exclusive partnership with local real estate agency Parallel, a firm experienced in facilitating cryptocurrency-based property sales in the Cayman Islands. Ledn will offer crypto-backed loans to real estate buyers, with Parallel accepting these loans as a legitimate means to finance property purchases. Parallel can also facilitate the conversion to fiat currency for buyers or sellers who prefer this option, while Ledn’s share of the transaction can be executed entirely in BTC or United States dollar-backed stablecoins.
Parallel, a crypto-focused real estate broker in the Cayman Islands, also enables cryptocurrency holders to directly use digital assets for property payments. An intriguing feature of this approach is that investors can leverage their Bitcoin holdings as collateral without liquidating any portion. This strategy allows them to benefit from potential BTC price appreciation while simultaneously seeing their property investment grow in value.
Parallel has a history of conducting cryptocurrency-facilitated real estate transactions, including a notable $10 million property sale completed entirely in cryptocurrency in December 2022. Both Ledn and Parallel, as registered VASPs with the Cayman Islands Monetary Authority, adhere to rigorous compliance standards, ensuring the security and legality of these innovative cryptocurrency-driven property investments.
While the concept of obtaining residency through cryptocurrency investments is not entirely novel – Vanuatu was among the first countries to accept Bitcoin as a form of payment for citizenship by investment – the Cayman Islands’ unique approach combines cryptocurrency and real estate investments to attract potential residents. Although Portugal, Malta, and El Salvador have embraced cryptocurrencies to varying degrees, none currently offer direct Bitcoin investments as a pathway to residency or citizenship.
