Property Markets Group (PMG) didn’t plan to take crypto as a down payment for their latest round of luxury condos in Miami. The New York-based developer’s hand was forced.

PMG began accepting cryptocurrency this week for deposits on sales at E11EVEN Hotel & Residences, a luxury real estate high rise in downtown Miami. Turns out CEO Kevin Maloney maintains personal crypto holdings — but Maloney’s greenlight for PMG came on the heels of buyer demand.

“It wasn't us that sat down and said, 'OK let's help crypto and make it more valuable,” Maloney tells Crypto Investor. “We are getting questions about it and requests for it, so we sat down and kind of thought process through."

Maloney considers the move as a baby step toward crypto becoming more widely accepted in real estate. Legacy financial market participants are watching the blockchain property space closely as a sign of more widespread adoption across traditional asset classes

Title companies, he said, remain wary of transacting in cryptocurrency, so PMG plans to tap a law firm to accept and convert crypto deposits to fiat.

Maloney said he expects to expand crypto adoption to other projects and other parts of the purchasing process if sales at E11EVEN are successful.

“I think this will be relatively smooth, because it's really not that complicated,” he said. “Someone's starting with Bitcoin, before it gets to the title company it’s cash. I don't know that there's really any significant complexity here ... You're just helping a buyer who wants to pay in crypto and doesn't want to write a check. Right? For whatever reason. That's all this is.”

PMG's move is symptomatic of two broader trends: The growing interest in crypto from the real estate space and the continued embrace of the industry in Miami. 

In April, Minnesota real estate firm Nolan Reynolds International (NRI) signaled they were planning a tokenized $240 million real estate investment trust for their planned Thesis project, also in Miami. 

"I think with Miami being a bit of a rogue city, it fits," Maloney said. "I do think they want to become a crypto capital." 

Maloney said he expects adoption to be slow, but steady. 

"I'd like to get a whole bunch of these done through crypto. I'd like to actually get to doing closings in crypto. And I think we will," he said. "If there was some risk element in this process, I would tell you that it can't happen. But there's just nothing here."

 

Property Markets Group (PMG) didn’t plan to take crypto as a down payment for their latest round of luxury condos in Miami. The New York-based developer’s hand was forced.

PMG began accepting cryptocurrency this week for deposits on sales at E11EVEN Hotel & Residences, a luxury real estate high rise in downtown Miami. Turns out CEO Kevin Maloney maintains personal crypto holdings — but Maloney’s greenlight for PMG came on the heels of buyer demand.

Member Exclusive

Get Access to Our Exclusive Content