TechFlow, Dec 3 — According to Cointelegraph, by the end of 2024, over 1,300 foundations were registered in the Cayman Islands, with more than 400 additional registrations in 2025—an increase of approximately 30% compared to the end of 2024. These structures are increasingly being used as legal wrappers for decentralized autonomous organizations (DAOs) and as ecosystem managers for major Web3 projects.
Data from the Cayman Islands Monetary Authority shows that many of the world’s largest Web3 projects have registered in the jurisdiction, with at least 17 foundation entities holding treasury assets exceeding $100 million. The primary reason DAOs choose the Cayman Islands is that foundation companies there can enter into contracts, hire contributors, hold intellectual property, and interact with regulators, while shielding token holders from personal liability related to DAO obligations.
Notably, the new Crypto-Asset Reporting Framework (CARF) rules will take effect on January 1, 2026, imposing due diligence and reporting obligations on Cayman “reportable crypto-asset service providers.”
