Cayman Islands' Web3 entity registrations surged by 70% year-on-year, surpassing 1,300 by the end of 2024, with over 400 new registrations in 2025. These entities, often used as legal shells for DAOs and custodians for Web3 projects, are increasingly popular due to their ability to sign contracts, hire staff, and protect token holders from personal liability. At least 17 of these entities now manage over $100 million in treasury assets. The rise in registrations is driven by the need for legal protection, as highlighted by the 2024 Samuels v. Lido DAO case, and the appeal of tax neutrality and a familiar legal framework. The upcoming OECD Crypto-Asset Reporting Framework (CARF), effective January 2026, will impose new reporting obligations on Cayman's crypto asset service providers, though it may not affect passive structures like protocol treasuries.