Cryptocurrency Payment Becomes the Superyacht Buyer’s Solution No One Expected [In the News]

This article was featured on themarketherald.com in November 2022 and was written by Michael Cameron.

Cryptocurrency payments for superyachts are still relatively new on the scene, but the kind of advantages offered by the system makes it seem too temptingly good to be true. Reduced costs and vastly reduced time to make a transaction make cryptocurrency a very cost-effective and convenient way to buy a superyacht.

When dealing with vast amounts of money, the illusion that a broker will swoop down and deliver you a luxury superyacht is foremost in the minds of those chortling about payment plans and financing schemes that can take months, if not years.

Often the waiting period to buy or sell a superyacht is one of the most costly parts of a purchase due to berthing and maintenance fees. But yacht owners are starting to realise they can now buy a superyacht in the time that it takes to take one out for a very short cruise.

“Cryptocurrency is not likely to go away, it is a developing space, which is building momentum with increasing take up.” – Matt Ovenden, Founder of Borrow A Boat Group

If a five-minute transaction seems too good to be true, it’s worth noting that cryptocurrency as an asset is still in its infancy. Disruptors like UK boat hire platform, BorrowABoat acknowledge that crypto is likely to go through more regulation and value changes, but believe it’s here to stay.

There are already many examples of multi-million dollar superyachts being paid for with bitcoin and brokerages have taken notice. A wide selection of yachting companies accept cryptocurrency as payment, and more are starting to update their services.

My Ocean

My Ocean CEO Jonny Dodge says that cryptocurrency payment provides a new route to finding clients for superyacht charters. In 2020, he branched out from delivering luxury Formula 1 experiences in Monaco and elsewhere to providing superyacht services.

My Ocean offer buying, selling, managing and chartering services for luxury vessels, all paid for with crypto. They are trying to find a way for new clients to be able to more easily engage in the luxury yachting lifestyle.

“We started small and have grown rapidly because of the crypto opportunities, so we’re bringing new young customers that haven’t been in the market before.” – Jonny Dodge, CEO of My Ocean

BorrowABoat

Payment in bitcoin, Ethereum and Litecoin are central to British start-up BorrowABoat’s philosophy. Launching in 2017, the website quickly gained traction due to its advanced algorithms, matching buyers and charterers to boats based on individual criteria better than competing online companies.

BorrrowABoat takes between 15-20 per cent commission from people “renting” their boats and has recently been backed by not only a crowdfunding round of almost £3 million but also by British Marine Insurance and the Royal Yachting Association. The company plans to expand overseas with tailored marketing strategies for each country.

“We started taking crypto to reach a wider market audience, and new customer types. As a platform we are striving to be accessible and flexible across the board to make it as easy as possible for anyone to go boating.” -Matt Ovenden, Founder of Borrow A Boat Group

BorrowABoat started accepting cryptocurrency payments for its services, including for superyachts, after acquiring high-end charter brokerage Helm in 2021.

Camper & Nicholsons

As of earlier this year, luxury yachting institution Camper & Nicholsons has been accepting crypto payment, partnering with BitPay, the world’s largest provider of bitcoin and cryptocurrency payment services.

Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, Shiba Inu, Wrapped Bitcoin and five USD-pegged stablecoins (BUSD, DAI, GUSD, USDC, and USDP) are accepted by BitPay and transactions take anywhere from five minutes to three hours, depending on network traffic.

Denison Yachting

Denison Yachting was among the first yachting companies to start taking cryptocurrency transactions, taking its first charter payment using crypto way back in 2018. Bob Denison, president of Denison Yachting, says that a huge advantage to using the payment method is that transactions can be made anytime, like on a Sunday.

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The yachting company already operates a multi-currency account for about a dozen different currencies including euros, Japanese yen, and British pounds. Funds are transferred into Denison Yacht’s escrow account where they are safe from fluctuations until the purchase is completed.

Yachtzoo

Another yachting company that uses cryptocurrency exchange BitPay is Yachtzoo. Operating brokerages in Monaco, the US, the UK and Japan, Yachtzoo offers sales, charter and management services for superyachts of any size.

BitPay supports more than 90 different wallets and exchanges including Coinbase, Exodus Wallet, Ledger Wallet, Trust Wallet, Electrum Wallet, Blockchain Wallet and a host of others, making it very easy to complete transactions.

As with any kind of wealth transfer method, there are risks involved, such as price fluctuations. But when cryptocurrency is used in the tricky process of transferring ownership of a superyacht, the benefits of convenience and far lower transfer fees tend to outweigh the risks.

The ability to transfer large sums and a very quick transfer period compared to other payment methods makes crypto payment perfect for buying a superyacht and ensures you don’t have to fork out for a berthing while waiting for a transfer.

One of the world’s biggest and most successful superyacht shipyards, Oceanco has released Superyacht NFTs which offer access to future ongoing benefits that are experienced both virtually and in the real world.