BitPay, the world’s largest processor of bitcoin with about $1 billion in yearly business, processed nearly $20 million in real estate development and real estate sales in 2017.
BitPay acts as a payment processor for home buyers. The firm exchanges bitcoin into U.S. dollars and transfers the funds to an escrow agent on behalf of the buyer.
Following the bottoming out of the cryptocurrency market in 2018, this figured dropped to around $6 million, according to BitPay’s chief commercial officer, Sonny Singh.
Singh said the company performed its first real-estate transaction through California-based real estate agent. Since then, the company has processed “millions” in real estate transactions for corporations and individuals, with 2019 looking like its best record yet.
According to Singh, the average price of a home purchased through the exchange is around $1 million. The company has standing relationships with a number of developers and real-estate agents. It also processes real estate transactions in some of the world’s most expensive housing markets, including Dubai.
About 79 percent of BitPay’s real estate transactions happened abroad, though 34 percent of the dollar value came from domestic U.S. buyers.
BitPay’s Latest partner
A luxury condominium complex in Orlando, Florida, is the latest firm to partner with BitPay to provide bitcoin payment processing for real estate transactions.
For their part, Grove Resort condos sell from $330,000 to $595,000, for a property five minutes outside Disney World.
BitPay charges a 1 percent processing fee and settles within seconds, whereas a bank wire charges around 5 percent and could take several days to come in, according to Singh.
According to David D’Ambrosio, a director at the resort, the resort currently only accepts bitcoin, but may add other currencies down the line.