The number of foundations in Cayman has surged as crypto projects continue to go offshore.

The number of foundations established in the Cayman Islands increased by more than 70% year-over-year, surpassing 1,300 entities by the end of 2024, indicating a continued strong trend toward offshore structures.

A report from Cayman Finance states that by early 2025, there were more than 400 new registrations, despite the US making efforts to regain a competitive position for digital asset businesses.

The foundation model has become the preferred choice for DAOs after the Samuels vs. Lido DAO lawsuit in California, where the court viewed an unregistered DAO as a “general partnership.” Although the precedent’s value is limited, the ruling has prompted governance projects to seek jurisdictions with a clearer separation between contributors and protocol activities.

Cayman—a major hub for the fund industry—has seen significant migration, including the OpenSea Foundation and companies related to crypto ETFs. The foundation regime here allows projects to manage intellectual property, treasury, and governance models without exposing tokenholders to personal liability.

At the same time, the US is shifting its stance. The Trump administration has sent multiple pro-crypto signals, from proposing a Strategic Bitcoin Reserve to appointing industry-friendly personnel. The SEC and CFTC have also eased their enforcement approach, while reforms such as amending the Corporate Transparency Act help reduce burdens on startups.

Nevertheless, crypto projects continue to separate their structures: foundations are based in Cayman or Switzerland to manage governance, while commercial and market operations are located in Hong Kong, Dubai, or the US to leverage licensing and capital flows.

The remaining question is whether the US can attract foundation-level operations back. For now, most businesses still choose to keep governance in offshore regions while expanding activities across various other jurisdictions.