Cayman Foundation Companies - Fintech

The Foundation Companies Act, 2017 (the "Act") introduced another innovative and flexible vehicle in the Cayman Islands which can be used in a myriad of ways to assist clients with finding solutions to structuring issues. Foundation companies ("FCs") were initially introduced to meet the demands of clients located in civil law jurisdictions who were unaccustomed to traditional common law trust structures. The legislators responsible for drafting the Act certainly did not have the Fintech sector in mind when they were designing the FC. However, we have seen a number of clients in the Fintech space embrace the flexibility and adaptability of the FC and use it in a number of ways, including as a legal wrapper for decentralised autonomous organisations ("DAOs") .


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