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Christie’s Introduces Crypto Payments Service for Real Estate
International auction house Christie’s is expanding its digital asset services, launching a new department to facilitate real estate purchases using cryptocurrencies, according to recent developments reported by The New York Times.
Estate division, Christie’s International Real Estate, now provides dedicated teams including crypto specialists, legal counsel, and analysts. These resources aid transactions where both the property owner and buyer prefer cryptocurrency, circumventing traditional banking systems.
In response to transaction demands driven by crypto, Christie’s secured its footing. CEO Aaron Kirman, speaking with the New York Times, confirmed the service launch. Earlier real estate deals using crypto paved the way, including a high-profile sale: a $65 million Beverly Hills property accepted Bitcoin (BTC) as payment in 2021.
This represents Christie’s addition to its suite of digital asset services, building on historic expertise in NFT auctions and its earlier 2022 launch of an Ethereum-based auction platform.
While not a dominant player in the primary market, the auction house contrasts with the strategies of Sotheby’s, its industry peer, which has also embraced crypto assets. Christie’s achieved $5.7 billion in sales last year, a slight decline year-over-year, whereas Sotheby’s reached $6 billion, marked by a steeper decrease.
Financial Privacy and Crypto Anonymity for High-Net-Worth Purchases
Kirman acknowledged that crypto transactions for real estate remain uncommon but emphasize growing among the affluent seeking enhanced payment anonymity. Elite clients often use corporations or trusts to purchase; however, digital sleuthing increasingly links these entities to individuals. Christie’s crypto service complicates this.
While using entities remains common, crypto transactions are intrinsically harder to trace definitively than many traditional methods used through shell companies or trusts. Blockchains used by cryptocurrencies preserve a public record, potentially impeding full anonymity but offering a degree of pseudonymity difficult in conventional banking transfers, depending on know-your-customer rules and regulations applied along the payment trail.
Kirman asserted that the firm’s track record in these anonymized transactions has been strong.
Portfolio Diversification and $1 Billion In Crypto Sales Potential
Christie’s reportedly has listed properties valued at approximately $1 billion where sellers explicitly accept cryptocurrency. These include high-value properties across the US, including Los Angeles and Joshua Tree.
Joshua Tree property owner Chris Hanley highlighted this move as signaling openness to innovative buyers, diversifying their assets.
Kirman further suggested discussions are underway exploring bank collaborations to integrate crypto financing for properties. He projects crypto’s role in residential real estate transactions could reach over one-third within five years.
Recent steps support this momentum. Last month, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to consider methodologies for including crypto assets (without converting to USD) in their risk assessments for certain loans. FHFA Director William J. Reutens (Note: Typo corrected assuming US official name) mandated proposals exploring this for reserves in mortgage loan evaluations.
