This Cipriani Residence condo set a staggering new precedent for Miami — a crypto-backed closing.
Miami's real estate market is as hot as its weather, even as interest rates barrel toward recession-welcoming rates. The city, and Miami-Dade in general, is also home to a burgeoning cryptocurrency safe haven thanks to Mayor Francis Suarez who even receives his salary in Bitcoin and Algorand. It was only a matter of time before in-demand luxury residences across the greater Miami metro area started trading in cryptocurrency, and Denis Smykalov of Wolsen Real Estate's latest transaction just might've set an exciting new precedent as interest rates teeter off the housing boom's edge.
"We are seeing more buyers willing to pay with cryptocurrency as it is becoming easier to do," says Smykalov, who spoke to NewsBreak exclusively. "With more people relocating from New York and California, and so many Crypto companies moving here as well, it creates more opportunities to use this great new form of payment."
The buyer of this new-build east-facing Cipriani Residence condo paid for their two bedroom, two and a half bathroom apartment with USDT, a US dollar-based stablecoin called Tether.
Instead of relying on a traditional bank to finance the property or paying in cash, the buyer likely converted other coins like Bitcoin and Ethereum to USDT, which holds a USD equivalent on most days, to complete the transaction.
"We are also seeing some Miami developers accepting crypto and third-party companies that can help facilitate transactions on resales," details Smykolov, who also sold a three-bedroom unit at the nearby St. Regis for a whopping $5,450,000 in cryptocurrency.
Though this 1,869 square-foot slice of luxury in the sky was hardly a difficult sell, accepting cryptocurrency is something Florida real estate brokers are looking to as recession looms.
"I think we'll see a lot more flexibility in terms of payment structures as rates continue to increase," explains Mark Kaplowitz, an analyst based in Aventura. "That means accepting Bitcoin and all the alt-coins, especially as Miami relies so heavily on an international crowd that may not want to be reliant on the weight of the US dollar."
Do you currently own cryptocurrency and plan to use it as a viable tender? We'd love to hear your feedback in the comments section below!