New figures show a 70% increase in Cayman Islands foundation company registrations, with over 1,300 in 2024 and 400 new registrations in 2025. These structures are used for DAOs and Web3 projects, with at least 17 companies having treasuries over $100 million. Cayman offers legal protection for tokenholders.

Cayman’s foundation companies are favored by DAOs for contracts, hiring, IP, and regulatory interaction, shielding tokenholders from personal liability. The legal case of Samuels v. Lido DAO in 2024 highlighted the need for legal protection. Cayman foundation companies provide a separate legal identity for DAOs and asset ownership rights.

Cayman’s tax neutrality and legal framework attract institutional investors and Web3 companies, leading to a rise in foundation relocations. Switzerland remains a hub for blockchain firms, hosting over 1,700 companies, with foundations and associations growing rapidly. The US has been slow in recognizing DAOs legally.

The surge in Web3 foundations in Cayman coincides with the implementation of the OECD’s Crypto-Asset Reporting Framework. The new regulations require due diligence and reporting from Crypto-Asset Service Providers in Cayman. The framework aims to collect tax data, track transactions, and file reports with the Tax Information Authority.

Legal experts note that the CARF regulations apply to crypto service providers like exchanges, brokers, and dealers, exempting entities like protocol treasuries or passive foundations that only hold assets. This allows many foundations to benefit from Cayman’s legal and tax advantages without full reporting requirements.

Read more at Cointelegraph: Cayman Islands Sees Rise in Foundation Company Registrations