In what it describes as an industry first, Christie’s International Real Estate Southern California launched a specialist division some weeks ago to cater to buyers and sellers who wish to use cryptocurrencies for their transactions. The division already has a $1+ billion portfolio of ultra-luxury properties, including a single home listed for $118 million.
In a news release, Christie's revealed a real estate agent's talent for hyperbole. Besides labeling the move as an "industry first," it described its new division as "a seismic shift," "groundbreaking," and "at the forefront of the digital currency revolution."
“This is the moment crypto wealth meets tangible luxury,” said Aaron Kirman, CEO of Christie’s International Real Estate Southern California. “We’re not just accepting cryptocurrency, we’re creating an entirely new marketplace for the growing class of digital asset holders seeking to diversify into premier real estate.”
Why Now?
When The New York Times picked up the story, it took a more sober approach: "The firm ... has become the first major brokerage to create a dedicated team of lawyers, analysts and crypto experts to handle transactions in which both the buyer and seller are working exclusively with digital payments and not reliant on any bank, making the move as cryptocurrency continues to zoom its way into mainstream finance."
And, this year, it certainly has zoomed its way into mainstream finance. With the president's personal backing, the government has broken down much of the fear and distrust — some of it justified — that once surrounded cryptocurrencies.
"Institutional adoption, greater regulatory clarity, and a growing awareness of blockchain technology’s potential are powering a shift in acceptance of digital assets," says Charles Schwab. To learn more, listen to the 40-minute podcast at that link.
But Christie's move is only a small step in the wider acceptance of crypto in real estate. "In June, Fannie Mae and Freddie Mac were both instructed to consider crypto investments as a key part of home buyers’ portfolios when they are applying for mortgages," that Times article observed. "About 14 percent of American adults now own at least some cryptocurrency, according to a recent Gallup poll."
Why Use Crypto Instead of Dollars?
One huge advantage of using crypto to buy a home is the extra layer of privacy that it offers. Traditionally, famous buyers who wish to remain anonymous shield their identities by using limited liability companies (LLCs) as proxies.
However, such shields are far from impregnable. The Times cites the case of Beyoncé and Jay-Z, who in 2023 bought a $200 million home in Malibu using an LLC. Google it, and you'll find everyone with any interest in the couple knows all about it.
Funding your LLC with crypto adds an additional layer of protection that makes it much harder to pierce the LLC privacy shield.
However, privacy may not be a buyer's only motivation for wanting to pay using crypto. These currencies have long been a favorite of those wishing to launder the proceeds of crime or to evade taxes.
