According to Cointelegraph, UK auction house Christie’s is expanding its digital asset services by launching a new division that facilitates real estate purchases using cryptocurrency. Christie’s International Real Estate has assembled a team of crypto experts, lawyers, and analysts to assist in transactions where both the property seller and buyer prefer to use cryptocurrency instead of traditional banking methods. This move follows several significant real estate sales conducted with cryptocurrency, including a notable $65 million transaction for a Beverly Hills property using Bitcoin.
Christie’s has been at the forefront of integrating cryptocurrency into its services, having previously offered auctions for non-fungible tokens and launching an Ethereum-based auction platform in 2022. The auction house, alongside its competitor Sotheby’s, has embraced the digital asset trend, although both reported a decline in sales last year. Christie’s recorded $5.7 billion in sales, a 6% decrease from 2023, while Sotheby’s saw a 23% drop, totaling $6 billion.
The use of cryptocurrency in real estate transactions is gaining traction among the wealthy, who seek anonymity in their purchases. High-profile individuals often buy properties through companies or trusts to obscure their identities. However, the transparency of blockchain technology makes it challenging to trace transactions back to the buyer. Christie’s CEO Aaron Kirman noted that the firm has been successful in protecting buyer identities in crypto transactions, with some deals so discreet that even the sellers remain unaware of the buyer's identity.
Currently, Christie’s has approximately $1 billion worth of real estate available for purchase with cryptocurrency, including multimillion-dollar properties from Los Angeles to Joshua Tree. Chris Hanley, the owner of a Joshua Tree property listed for nearly $18 million, expressed that accepting cryptocurrency attracts innovative buyers, including crypto millionaires and billionaires seeking to diversify their assets.
In addition to facilitating direct crypto transactions, Christie’s is in discussions with banks to consider accepting cryptocurrency for financed home purchases. Kirman speculates that within five years, cryptocurrency could be used in over a third of all residential real estate transactions. This aligns with recent developments in the U.S., where the Federal Housing Finance Agency has instructed mortgage purchasers Fannie Mae and Freddie Mac to explore the inclusion of cryptocurrency as an asset in their risk assessments for home loans. This initiative reflects a growing recognition of cryptocurrency's potential role in the real estate market.
