The Cayman Islands has solidified its position as a leading jurisdiction for Web3 and DAO legal structures, with over 1,300 registered funds by the end of 2024. This growth is further bolstered by the formation of more than 400 additional companies in 2025. The surge is attributed to the demand for legal clarity and protection following U.S. court rulings that increased liability risks for DAO participants. Cayman's modern legislative framework and robust professional services are attracting significant Web3 projects, including those managing treasuries over $100 million. The jurisdiction is also gearing up for the 2026 implementation of the OECD's Crypto-Asset Reporting Framework (CARF), which will introduce new compliance obligations for crypto service providers.