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ARTICLE · 26 JANUARY 2022

A Foundation For FinTech

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Cayman Islands foundation companies (Cayman Foundations) are increasingly being utilised as popular structuring vehicles in the sector.

Cayman IslandsTechnology

ROBERT LINDLEY AND WESLEY O'BRIEN DISCUSS THE USE OF CAYMAN ISLANDS FOUNDATION COMPANIES IN THE FINANCIAL TECHNOLOGY SECTOR

Cayman Islands foundation companies (Cayman Foundations) are increasingly being utilised as popular structuring vehicles in the sector. Although Cayman Foundations may initially have been intended to attract high net worth clients from civil law jurisdictions (who may be more familiar with foundations, as opposed to trusts, for their wealth planning structures), their unique features and flexibility have allowed for the creation of highly bespoke entities that are well suited to certain fintech structures, including decentralised autonomous organisations (DAOs). The Cayman Islands' position as a hub for fintech is also enhanced by the introduction of the Virtual Asset (Service Providers) Act, 2020 (VASP Act), which provides invaluable regulatory oversight for innovative virtual asset business.

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