The Cayman Islands have seen a 70% year-on-year rise in Cayman foundation company registrations typically used by blockchain-based organisations.
Foundation companies are often used as legal wrappers by decentralised autonomous organisations (DAOs) – blockchain-based organisations operating through digital contracts without a central authority – and by Web3 projects.
At the end of 2024, more than 1,300 foundation companies were on the register, compared to 790 the previous year. More than 400 foundation companies have been registered in 2025 so far.
Currently, there are at least 17 Web3 foundation companies registered in the Cayman Islands, with treasuries of over $100m. These foundations are estimated to hold around $10bn in combined total assets.
Many of the world's largest Web3 projects are now registered in the Cayman Islands using foundation companies to benefit from liability protection as well as the tax neutrality of the jurisdiction.
Haymond Rankin, associate director for the fintech and virtual asset sector at Cayman Finance, said: “The growth of foundation companies registered in Cayman reflects the jurisdiction’s blend of modern legislation, robust professional services, and regulatory clarity.
“Cayman foundation companies give DAO communities and Web3 projects the operational flexibility they value, together with the legal certainty global participants expect.
“We will continue to work with members, regulators, and global standard‑setters to ensure Cayman remains the jurisdiction of choice for responsible Web3 innovation.”
Melissa Lim, partner and co-head of the global fintech group at international law firm Walkers, added: “As the digital asset and blockchain sector continues to mature, businesses are increasingly seeking a jurisdiction that combines legal clarity with operational flexibility, giving them confidence to scale responsibly and the ability to attract a wider array of stakeholders.
"In this respect, the Cayman Islands is clearly setting the standard for secure and innovative governance.”
