Crypto Lender Ledn Partners With Parallel To Offer Fiat-Free Real Estate Purchases in Cayman Islands

Hassan Shittu
Last updated: | 3 min read
Source: iStock

On August 24, Cryptocurrency lender Ledn partnered with Cayman’s top crypto real estate broker, Parallel, to allow crypto investors to buy Cayman Islands real estate using digital assets.

The alliance opens up a new way for crypto investors to avoid the need to convert to fiat or sell their crypto while also offering a pathway to a “Golden Visa” qualification.

Founded in 2018, Ledn Inc., a worldwide digital asset financial services provider, obtained registration and regulatory clearance as a Virtual Asset Service Provider (VASP) in May from the Cayman Islands Monetary Authority (CIMA). Ledn provides savings accounts and loans to clients across 130+ countries, and since then, it has been extending its services and supported regions.

Also, on September 1, 2022, Parallel Limited achieved a historic milestone as the inaugural crypto real estate escrow provider in the Cayman Islands. It facilitated the Territory’s first-ever cryptocurrency sale, involving a private residence with a price exceeding $5 million.

After the first sale, Parallel Limited showed impressive growth by facilitating the Territory’s second cryptocurrency purchase, a private home costing more than US$10 million paid for entirely with cryptocurrency.

Since then, Parallel has already facilitated several other property purchases, ranging from US$1 million to US$12 million.

“As both companies are regulated by the Cayman Islands Monetary Authority (CIMA) as Virtual Asset Service Providers, this partnership is a testament to the framework that the regulator has put in place to encourage the responsible development of the crypto industry in the Cayman Islands. We are proud to be working with Parallel and to benefit from their stellar track record of facilitating crypto real estate purchases,” said Adam Reeds, CEO of Ledn.

Ledn and Parallel’s partnership enables substantial crypto holders to tap into a real estate market with potential. This collaboration offers a compliant and smooth avenue for purchasing a slice of Cayman paradise using digital methods.

“We’re thrilled to be partnering with the premiere crypto lender in the world, Ledn, to offer our clients an innovative financing solution,” said Laura Birrell, CEO of Parallel.

“No longer will our clients have to decide between holding on to their crypto or purchasing that luxury property on Seven Mile Beach—now they can do both.”

By utilizing their Bitcoin holdings as collateral for Ledn loans, investors can employ these funds to acquire real estate through Parallel.

For a Ledn loan, crypto investors can initiate the process by utilizing Bitcoin as collateral. Like Ledn’s existing loan products, clients would commence with a 50% loan-to-value ratio and an annual interest rate of 12.9% APR.

Ledn and Parallel Launch Golden Visa Initiatives for Crypto Investors in Cayman Paradise

By partnering, Ledn and Parallel extend crypto-native investors the opportunity to acquire a share in Cayman Paradise with compliance and ease.

This collaboration also introduces the “Golden Visa,” enabling crypto investors to purchase real estate and fulfill the requirements for Cayman Island’s citizenship-by-investment program.

The “Golden Visa” concept is a part of citizenship-by-investment programs operating in 22 countries, including the Cayman Islands, Spain, Grenada, Switzerland, the United States, Greece, and more.

These programs allow investors to secure permanent residency and obtain future citizenship initially.

In the Cayman Islands, the quickest route to permanent residency requires a minimum $2.4 million investment in real estate.

With no restrictions on foreign ownership and no property, capital gains, inheritance, or recurring taxes, Cayman is a preferred choice for foreign investors who gain significant returns on their real estate investments.

However, property availability in the Cayman Islands has dropped by 15% annually, leading to rising demand and higher home prices.

This partnership particularly appeals to individuals with substantial cryptocurrency holdings, as it provides access to a real estate market with exceptional growth potential.