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Cayman Islands Foundation Registrations Surge 70%, Driven by DAO Structures

By end-2024, Cayman foundation registrations exceeded 1,300, with more than 400 added in early 2025; upcoming OECD CARF rules will increase crypto service reporting requirements.

Summary

Foundation company registrations in the Cayman Islands rose 70% year-over-year to over 1,300 by the end of 2024, with more than 400 new entities registered in the first five months of 2025. At least 17 foundations hold treasuries exceeding $100 million. Many serve as legal structures for decentralized autonomous organizations (DAOs). New OECD Crypto-Asset Reporting Framework (CARF) rules, effective in 2026, will require due diligence and reporting from crypto service providers.

Terms & Concepts
  • DAO (Decentralized Autonomous Organization): A blockchain-based organization governed by smart contracts and community voting, operating without centralized leadership.
  • OECD’s Crypto-Asset Reporting Framework (CARF): An international regulatory framework established by the Organisation for Economic Co-operation and Development to enhance tax transparency for cryptocurrency and digital asset transactions.
  • Foundation company: A type of legal entity often used in offshore jurisdictions, combining features of a company and a trust, suitable for holding assets or serving as a governance vehicle for blockchain projects.