As reported by HashNews, new data shows that Cayman Islands' base company registrations grew by 70% year-on-year, reaching over 1,300 by the end of 2024, with more than 400 new registrations in 2025. These structures are increasingly used as legal shells for DAOs and as custodians for major Web3 projects. According to Cayman Finance, at least 17 of these entities now hold over $100 million in treasury assets. The rise of Cayman base companies is attributed to their ability to sign contracts, hire staff, hold IP, and interact with regulators while protecting token holders from personal liability. The 2024 Samuels v. Lido DAO case highlighted the risks of unprotected DAOs being treated as general partnerships. Cayman base companies offer a legal solution by providing independent legal personhood. The growth is also driven by tax neutrality, a familiar legal framework for institutional allocators, and a specialized Web3 ecosystem. Meanwhile, the OECD's Crypto-Asset Reporting Framework (CARF) will be implemented in January 2026, imposing due diligence and reporting obligations on Cayman's 'reporting crypto asset service providers.' Legal experts note that CARF likely applies to entities providing services such as trading or custody, but not to passive structures like protocol treasuries or investment funds.
Cayman Web3 Entity Registrations Surge 70% Amid CARF Regulations Looming
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