Buying a piece of an island: How crypto changes property deals

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A large chunk of the world’s wealth today is locked in illiquid assets, therefore they are typically traded at a discount.

According to a recent study by the Boston Consulting Group, “tokenisation” – using cryptocurrencies and blockchain technology promise to turn illiquid assets such properties into capital flows – and this market is expected to grow to $16 trillion (€14.85 trillion) by 2030.

Although the use of these new digital tools has yet to be widely regulated in the US, new laws in Europe are set to take effect from 2025 which may lead to investors reconsidering the idea of tokenising real-world assets, including real estate, high-value art, and equities, among others. 

“Tokenising” is a way of turning tangible assets into digital fragments of themselves, using blockchain technology. The tokens function on the blockchain through smart contracts, and one token can represent a whole object as well as its part. 

The highest-valued property transaction involving cryptocurrencies to date is a more than $500m property deal involving the Bahamas islands of Long Island and Andros Island. It was entirely paid by a cryptocurrency called Unicoin. 

Unicorn is the cryptocurrency of a firm called Unicorn Hunters, which uses crowd-funding as a way of seeking out start-ups to invest in with what they believe will ultimately have a valuation of more than $1 billion (€930m). According to their study of the market, two of the top three countries with properties available to buy with cryptocurrencies were in Europe. Spain had 289, Thailand offered 227 and Portugal 130. 

Silvina Moschini, founder of Unicoin and Unicorn Hunters talked to Euronews about the ups and downs of the current crypto investment landscape and her journey in the property market.

Watch the video above to learn more about cryptocurrencies in the real estate market.

Disclaimer: This information does not constitute financial advice, always do your own research on top to ensure it’s right for your specific circumstances. Also remember, we are a journalistic website and aim to provide the best guides, tips and advice from experts. If you rely on the information on this page, then you do so entirely at your own risk.