How Miami is Leading the Way for the Crypto-Real Estate Merge

Miami has long been synonymous with many things, in many ways mostly relating to entertainment and leisure. Lately, however, Miami has made a name for itself as the place to be for business. In the height of and waning days of the pandemic, huge numbers of finance and technology companies moved their operations to Miami. With large firms moving into downtown, Miami has quickly gained the reputation as the Manhattan of the South, and anyone who is anyone in the finance and technology industries set their sights on South Florida. At the nexus of these two industries is perhaps the most talked about topic these days - cryptocurrency, and Miami is quickly becoming the hot spot for this industry as well. In fact, last month Miami hosted the world’s largest Bitcoin conference to date. It is no wonder, then, that Miami is also at the forefront of a coming together of the worlds of cryptocurrency and real estate as well.?

Last month, a Miami-based fintech company - Milo - issued one of the first ever cryptocurrency mortgages. This is a totally new innovation that takes advantage of the new market for crypto and enables those who have large amounts of wealth in the market to be able to quickly and easily acquire a mortgage that is backed with crypto collateral. This can be a gamechanger for international buyers who might not have enough credit in the United States to qualify for a typical mortgage, as well as those who are looking for a smoother transaction without all the international red tape. A second company in Miami is finalizing steps to form a partnership with a traditional mortgage lender, also in Miami, to be able to provide cryptocurrency home mortgages by the end of 2022.

Those who do not need financing are already active in the crypto real estate market in Miami. Two of the most eagerly anticipated pre-construction projects in the Miami luxury market are in the works by the same development company - PMG - who happens to be the first national developer to accept crypto as deposit payment on a pre-construction condo. E11EVEN Hotel and Residences is a sold-out project that accepted approximately $20 million in crypto deposits while units were available. Waldorf Astoria Miami is set to be the tallest tower in Miami and has the potential to trade even more in crypto than E11EVEN. This is only the start of what is possible as crypto grows in acceptance in the real estate industry.?

So far, the bulk of the conversation regarding using cryptocurrency in real estate revolves around the luxury markets. The Florida Keys luxury real estate market is primed for this addition. With a wealth of international buyers and a predominance of homes for sale in the Keys over $1 million, cryptocurrency transactions have the potential to revolutionize the market.