Crypto funds in Cayman jump 70% after Lido DAO ruling

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Yaroslav Dmytrenko

04.12.2025

Crypto funds in Cayman jump 70% after Lido DAO ruling — Cayman Islands surge as leading offshore crypto fund jurisdiction

The Cayman Islands have become one of the most popular offshore crypto jurisdictions. After a California court in November 2024 classified the non-corporate Lido DAO as a full partnership, the number of crypto funds registered there grew by 70% year-over-year.

Following the case of Samuels v. Lido DAO, the preferred structure for decentralized autonomous organizations (DAOs) seeking legal personhood shifted to the investment-fund model — and Cayman Islands legislation succeeded in attracting many new entrants.

According to CryptoSlate, the number of crypto funds established in the Cayman Islands rose by more than 70% year-over-year, exceeding 1,300 by the end of 2024; by early 2025, another 400 funds had been added. Major industry players drawn to the Caymans include the OpenSea Foundation and subsidiaries backing crypto-linked ETFs.

“There are now over 30,000 funds… I think the only jurisdiction that beats us is Delaware. So we’re really trying to outperform ourselves,” said Cayman's deputy-finance director, Cayman Finance’s Haymon Rankin.

Industry experts attribute the Cayman Islands’ popularity to the stability provided by its company-formation regime — allowing projects to hold intellectual property, manage multi-signature treasury obligations, and implement governance frameworks without exposing token holders to personal liability.

Owners of crypto projects are also attracted by the Cayman Islands’ Virtual Asset Service Provider law, which brings additional clarity to companies offering exchange, custody, or issuance services. As a result, this jurisdiction has become the default choice for organizational entities seeking legal protection.

U.S. market invites a return

Since the rise to power of Donald Trump, the U.S. administration has softened its stance toward the crypto industry. Several high-profile cases against crypto companies have been closed. Corporate strategy also began to adjust. The mid-2025 redomiciliation of Galaxy Digital from the Cayman Islands to Delaware illustrates how access to U.S. capital markets can compensate for the management advantages of an offshore domicile.

Still, Galaxy’s move does not yet signal an industry-wide shift — but it is an early indication that a more relaxed regulatory climate may draw some activity back to domestic markets.

Currently, crypto platforms increasingly separate governance and commercial operations to navigate conflicting regulatory regimes. Funds are often formed in the Cayman Islands or Switzerland to hold intellectual property, manage token treasuries, and formalize protocol oversight — while exchanges, operating subsidiaries, and infrastructure providers obtain licenses in jurisdictions with specialized regulatory regimes.

These structures often pair with U.S. or Asian operating companies, forming multi-jurisdictional arrangements that segregate governance, compliance, and commercial functions.

The United States is pursuing the repatriation of business at the fund level, but this remains uncertain. Offshore jurisdictions continue to offer clearer liability protections, simpler governance mechanisms, and a more predictable tax regime. Meanwhile, the U.S. provides unmatched access to public markets, banking, and capital formation — though its policy direction still depends on political cycles and incomplete regulatory reform.

As we wrote, Switzerland to share crypto tax data with 74 countries

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