The Cayman Islands becomes a leading hub for Web3 foundations, recording a 70% rise in foundation company registrations. Over 1,300 are registered by end-2024 and 400 more in 2025. DAOs and Web3 ecosystems use these structures for legal protection and stewardship. At least 17 foundations hold treasuries above $100m, totalling around $10 billion in assets.
The Cayman Islands continues to strengthen its role as a leading global jurisdiction for decentralised autonomous organisations (DAOs) and Web3 projects, driven by a sharp and sustained rise in the registration of foundation companies. Official figures confirm a 70 per cent year-on-year increase in Cayman foundation company registrations, underlining the jurisdiction’s growing importance within the digital asset and blockchain economy.
Data from the Cayman Islands General Registry shows that more than 1,300 foundation companies are registered at the end of 2024, compared to 790 in the previous year. Growth continues into 2025, with more than 400 new foundation companies registered so far this year.
Haymond Rankin, Associate Director for the Fintech and Virtual Asset Sector at Cayman Finance, says:
“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. This is an essential combination for Web3 projects to move from experimentation to long-term stewardship of significant treasuries. We will continue to work with members, regulators, and global standard-setters to ensure Cayman remains the jurisdiction of choice for responsible Web3 innovation.”
Foundation companies become the legal backbone of DAOs
DAOs operate as blockchain-based organisations controlled through smart contracts rather than traditional management structures. Developers define governance rules in code, raise funding by issuing tokens, and grant token holders voting rights. These token holders vote on governance matters and funding allocation, while changes only take effect through community consensus. DAOs are widely used across decentralised finance (DeFi), blockchain infrastructure, and digital social platforms.
For many DAOs, the Cayman Islands foundation company now serves as the preferred legal structure for engaging with the real world. This structure allows DAOs to retain their decentralised nature while benefiting from formal legal status. Importantly, it shields token holders from personal liability for obligations or legal claims brought against the organisation.
Legal developments drive demand for DAO wrappers
The growing use of foundation companies follows recent legal developments in the United States, particularly the Samuels v. Lido DAO ruling. In this case, a federal judge at the US District Court for the Northern District of California determines that Lido DAO, which operates without a legal wrapper, qualifies as a general partnership under California law. As a result, its members face joint and several liability under traditional partnership rules.
This ruling accelerates the move among Web3 projects to adopt formal legal structures, with the Cayman foundation company emerging as the preferred choice.
Melissa Lim, Partner and Co-Head of the Global Fintech Group at Walkers, adds:
“It is no surprise that Cayman Islands-registered foundation companies are surging in popularity. We are continuing to see an increase in businesses enquiring about using a foundation company for their projects. 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.”
Web3 ecosystems use foundations as Stewards
Beyond DAOs, Web3 projects without decentralised governance also adopt Cayman foundation companies as ecosystem stewards. In these cases, the foundation acts as the legal entity responsible for real-world operations, partnerships, asset management, and regulatory engagement while maintaining alignment with the community-driven nature of Web3 ecosystems.
Billions in digital asset treasuries registered in cayman
The financial scale of Web3 foundations in the Cayman Islands continues to expand. At least 17 Cayman-registered foundation companies each hold treasuries exceeding $100 million. Collectively, these foundations are estimated to control approximately $10 billion in combined assets, reflecting the jurisdiction’s growing strategic relevance to the global digital economy.
Regulatory clarity and tax neutrality attract global projects
Cayman’s appeal extends beyond liability protection. The jurisdiction offers tax neutrality, regulatory clarity for digital assets, and a mature legal infrastructure familiar to institutional investors. It also benefits from a deep ecosystem of professional service providers with experience in blockchain technology, compliance, structuring, and governance.
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