Crypto Transactions in Yachting: How It Works & Why It Matters in 2024

As the cryptocurrency market reaches new heights, the Denison team sat down with Craig English and Billy Saunders from Bitcashier, our cryptocurrency partner, to talk all about the current state of affairs.

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What is cryptocurrency?

Cryptocurrency is internet money. It’s a combination of blockchain technology, a distributed ledger, and cryptography. And when you bring those three disciplines together, you get cryptocurrency.

What do you say to people who say “It’s fake money” or “I’m blowing my money away”?

We try to educate, not necessarily change people’s minds, but ask, do you think email’s fake? Do you still believe in the U.S. Post? Do you hand write a letter and put it in an envelope, put a stamp on it, and send it?

All fiat currency, which is government-issued money, is all digital now as well.

What’s great is that we have a partner like you who can explain it if needed.

Our service is as much providing education, comfort, and security, as it is the actual money movement. People want to know, is this transaction going to work? Is it going to be safe?  Are they going to be comfortable with this newer payment type?

As an EU-licensed money movement business that performs all KYC and follows all the regulations, we have a really good track record. We’ve been around for years. We’ve done in excess of 200 million dollars’ worth of yacht transactions. Our risk and compliance functions ensure the transactions are completed with good funds so that all parties are protected.

How can you ensure a buyer is using “good funds”?

Working with Denison’s finance department, we’ll do a scan of a buyer’s wallet to check a few things. One, are there enough funds to cover the transaction? And what are those funds? Were they derived from illicit activities, for example? Because with the blockchain, there’s complete transparency.

Does that mean that cryptocurrency has a kind of paper trail–an “electronic trail”?

That’s exactly what the blockchain is. There are a number of tools available that are essentially blockchain viewers. They enable one to see the transactions that took place in prior blocks.

Using these tools we can “see” what transactions the funds were used in previously. So when people say crypto is only for criminals and illicit activities, it’s actually the opposite because we can see everything. This is part of the education that is ongoing.

Has there been a time when you had to turn away a transaction?

Well, yes. It could be a case where they don’t have enough funds to cover the transaction amount or the risk rating on the wallet/funds is too high. If someone is on a sanctions list, that is also a reason we will not move forward with a transaction. Bitcashier is able to help brokers pre-qualify individuals for a crypto transaction so they know it makes sense to move forward in the buying process.

Is it possible to split a payment? For example, one million in crypto and the rest in USD?

Yes, absolutely. There is flexibility to do just the deposit in crypto or maybe just the balance. They may want to do half crypto, half fiat. We’re going to, for lack of a better term, concern ourselves with the crypto part. The fiat part would just go through traditional channels.

Would you say owning cryptocurrency is like owning art?

Well, it’s like any other asset. Some folks are really good at art or some people know how to buy and sell cars or boats. It’s an asset class that some people definitely develop an art for.

There’s been a lot of buzz around cryptocurrency lately. Is this a good time to be involved?

Right now Bitcoin is at or near all-time highs, so there is a lot of buzz. If you believe Bitcoin will continue to go up and you have a longer time horizon, then it is not a bad time to get involved. The best thing to do is get educated and understand what you are getting into. If you become a believer in the many benefits of cryptocurrency, you will likely be involved regardless of the market buzz.

Can you give us a general idea of where crypto stands right now?

Crypto is really relevant now, in part, because of the price of Bitcoin. Bitcoin just hit a new high. There are a couple of things that are driving the Bitcoin valuation.

One is the halving. The miners, people that secure the blockchain via the mining process, will see their reward cut in half. Historically, Bitcoin has hit new highs after the halving because of the reduced supply. 

Another is the Bitcoin spot ETFs. The amount of money flowing into these newly approved ETFs is significant It’s making headlines, drawing interest which is increasing the demand for Bitcoin.

Do each of you personally own cryptocurrency?

Billy: I do. I’ve been in the game for about four and a half years now, just before lockdown. So I’ve seen a lot of different kind of markets, how things work out, kind of throwing back where cryptocurrency is going to take us in the future. And it does get me pretty excited and gives me goosebumps to see where the digital asset market as a whole is going to go. Being in this industry has made me interested and I’m not that person at all.

Craig: Absolutely. I think there’s no better way to explain it to somebody than to have done it. To open a wallet and to move crypto from one wallet to the other. I own Bitcoin, Ethereum, and XRP. I have a long-term outlook so the short-term volatility does not impact me.

How is purchasing a yacht with cryptocurrency different than with regular money?

Virtually nothing changes in the process. Everything stays fiat, whether it’s pounds, dollars, euros. All the steps in the yacht listing and purchasing process remain the same. When it comes time to put down a deposit or pay a balance, Denison will initiate a crypto transaction via our platform, which will allow the buyer to send us the crypto. We convert it to fiat and put the money in the broker’s account.

How can you charter a yacht with cryptocurrency?

It’s the exact same thing. You have a charter agreement, you have a deposit, the balance is due, it’s all the same. The same invoice is issued by the Denison finance team. It’s paid the same, everything’s the same.

Is there anything else you’d like to mention?

Denison has built a reputation for itself in a very competitive market space as being crypto-friendly. It’s brilliant because they attract clients based on that reputation. I know for a fact that many crypto holders do not want to go and get into a debate with somebody about whether this is real money or not. They’re going to go to a broker that is going to work with them and help them. Denison has created a niche within a very competitive industry. It’s brilliant. I think they’ve done a great job of meeting their clients where they want to be.

The other reason that that niche or that reputation is beneficial is the majority of crypto holders globally skew younger. In this respect, Denison is bringing the next generation of yacht people into the business.

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Interested in buying or selling your yacht? Contact a Denison yacht broker to start the process today.

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