Miami quietly reclaims its cryptocurrency crown as market signals point to promising comeback

The Magic City could soon be better known as the "Crypto City," as certain market signals have risen to the surface and now indicate a quiet cryptocurrency comeback.

"I don't think this is a fad or a trend that's going to go away. And I think it's got huge benefits, and I think it's being done correctly now," Property Markets Group (PMG) managing partner Ryan Shear told Fox News Digital.

"Miami's crypto market's quietly coming back," he added, "and I would attest that that's very much true."

Starting in May, PMG launched crypto-to-cash payments for pre-construction condos across its Florida portfolio via publicly-traded payment processing company Shift4. The setup allows crypto holders to invest in real estate while developers receive U.S. dollars, aiming to bridge the gap between emerging tech and traditional finance.

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Another Miami real estate project, The Rider Residences, reportedly completed the area’s first direct wallet-to-wallet crypto transaction – removing fiat currency from the process entirely – around the same time.

This comes amid other signs of crypto momentum: the Winklevoss twins’ Gemini recently opened its first Miami office in the Wynwood neighborhood ahead of a confidential IPO filing; Citadel, which is building its new Miami headquarters, joined Goldman Sachs in backing a $135 million round for crypto firm Digital Asset, as Bloomberg reported earlier this year that they were exploring crypto trading.

"We’re seeing a strong wave of activity from companies across tech, finance and digital innovation. While some started in crypto or blockchain, many now span fintech, private capital and emerging investment platforms. They’re not just showing up. They’re committing," the Chairman, CEO and founder of Blanca Commercial Real Estate – who closed the office lease deal for Gemini – Tere Blanca also told Fox News Digital.

"Miami gained national attention early on for embracing crypto, but the more interesting story is how that early energy evolved into something much bigger," she continued.

Coming out of the pandemic, Miami positioned itself to be the "crypto capital of the world," with the mayor creating a "MiamiCoin," accepting 100% of his own salary in only crypto and making direct efforts to attract more pro-crypto business. From 2021 to 2023, the Miami Heat’s home stadium was named FTX Arena.

Though the FTX and Sam Bankman-Fried fallout rippled skepticism and caution throughout the industry, Shear believes that’s all quelled now.

"The way that we borrow money, the way we structure contracts with buyers, the way lenders lend money, everybody got smarter and safer for everybody's benefit. Nobody wants to see a crash like that," Shear said.

"The way that we set up with Shift4, the reason it took so long and the reason we did it carefully, and they did it carefully and the escrow agents and all the legal council we got, it was done with the lens of this can go south," he explained.

It’s still too early for PMG to tally the numbers of transactions placed, but Shear says PMG has accepted 65 crypto transactions under their previous system and expects to exceed those metrics moving forward.

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PMG and Shift4 are encouraging crypto holders to use stablecoins like USDC and USDT to start. But from centralized exchange accounts like Coinbase, you can also pay with assets like Bitcoin, Ethereum and Solana.

"As a new emerging financial instrument, I think there's a lot of people, no different than real estate or other asset classes, that want to diversify, de-leverage, and so forth," Shear noted. "All we do is really create an avenue to do that seamlessly."

"We're de-risking positions by telling people, hey, take some of your digital currency and why don't you diversify and put it into real estate," he expanded. "Frankly, when you take a step back over history, that's what a lot of people are generally doing between investing in a stock market or investing in hard assets or investing in commodities. This is just another avenue. So I think the nature of what we're doing is de-risking by offering another avenue effectively."

"While we’re not brokering crypto deals ourselves," Blanca clarified, "we’re certainly seeing early signs of adoption. Residential sales using digital currency are already happening in Miami, and that gives us a glimpse of where things might be headed."

"But what really stands out is how the companies behind these technologies are planting roots in Miami, and are poised to expand across the region. That’s what’s driving meaningful, long-term demand for space," she said.

Shear predicts Miami is setting the pace for crypto transactions to be more widely accepted nationwide, as he applauded Congress for setting "the tone for deregulating this industry."

On Wednesday, the House of Representatives clinched a new record for the longest vote in history due to a conservative rebellion over cryptocurrency bills.

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) to establish stablecoin regulations has already passed the Senate. The Digital Asset Market Clarity Act (CLARITY Act), expected to have at least some bipartisan support, would have placed new federal guardrails on cryptocurrency.

However, the last bill, a Republican priority called the Anti-CBDC Surveillance State Act, proved a flashpoint during Wednesday’s marathon vote.

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"I think we’re scratching the surface," Shear said. "I don't think crypto is specific to Florida. Well, Miami seems to be a hub of it."

"Miami is a very forward-thinking city. And it's not Silicon Valley. We're not a tech hub. And it's not New York, but it seems to be a good mix of a lot of the best cities," he noted. "So I think it just works well with the culture down here. And I think that permeates through a lot of industries."

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FOX Business’ Elizabeth Elkind contributed to this report.