Cayman Foundation Companies Jump 70% as DAOs Embrace Legal Wrappers for Stability

Cayman Foundation Companies have seen a dramatic increase in registrations, with a 70% year-on-year rise leading to over 1,300 on the books by the end of 2024 and more than 400 new registrations already in 2025.

This surge is fueled by the Cayman Foundation Companies Act 2017, which provides decentralized autonomous organizations (DAOs) with formal legal personality and limited liability, addressing historical legal ambiguities that posed liability risks for participants.

A key catalyst was the Samuels v. Lido DAO case in 2024, where a US federal judge ruled that unwrapped DAOs could be treated as general partnerships under California law, highlighting the need for robust legal structures.

The adoption of these frameworks enhances institutional confidence in DAOs, potentially boosting funding and operational efficiency, particularly for crypto-assets on prevalent blockchains like Ethereum. At least 17 foundation companies now hold treasuries exceeding $100 million, indicating significant financial implications.

Concurrently, the Cayman Islands has implemented the Organisation for Economic Co-operation and Development (OECD)'s Crypto‑Asset Reporting Framework (CARF), effective from January 1, 2026, which imposes due diligence and reporting duties on crypto-asset service providers, though passive foundations may be exempt.

This legal evolution contrasts with patchwork approaches in other jurisdictions, such as the United States' limited DAO recognition, while Switzerland's Crypto Valley continues to grow, hosting over 1,700 blockchain firms.