Key Takeaways
- • The Cayman Islands has conditionally registered nine tokenised investment funds with the Cayman Islands Monetary Authority (CIMA), establishing the jurisdiction as an emerging hub for blockchain-based fund structures.
- • New legislative amendments to the VASP Act, Mutual Funds Act, and Private Funds Act—passed in March 2026—create explicit statutory framework for tokenised funds while excluding them from dual-licensing requirements, reducing regulatory friction for fund managers and service providers.
- • Industry estimates project the tokenised real-world assets market could reach $10 trillion by 2030, with major asset managers including BlackRock, JPMorgan, and Franklin Templeton already piloting tokenised fund models globally.
- • Tokenisation enables smart-contract execution, real-time NAV tracking, improved investor accessibility, and enhanced operational efficiency across fund structures, addressing liquidity constraints in traditionally illiquid asset classes.
- • Cayman's competitive position is reinforced by its existing infrastructure: the jurisdiction hosts over 30,000 investment funds with $16 trillion in total assets and approximately 58% of crypto and digital asset hedge funds globally.
Summary
The Cayman Islands has registered nine tokenised investment funds on a conditional basis with the Cayman Islands Monetary Authority, marking a significant milestone in the global adoption of blockchain-based fund structures. The number is expected to expand materially following coordinated legislative amendments passed in March 2026 that establish the first explicit statutory framework governing tokenised fund interests in the jurisdiction.
The three amended Acts—the VASP Act, the Mutual Funds Act, and the Private Funds Act—provide regulatory clarity by explicitly excluding tokenised fund interests from Virtual Asset Service Provider (VASP) licensing requirements. This carve-out eliminates dual-licensing risk that previously deterred fund managers and service providers from operating tokenised structures, creating a clearer pathway for institutional participation in the space.
Tokenisation of real-world assets is accelerating globally as capital markets shift toward digital infrastructure. Industry estimates suggest the market for tokenised assets could reach $10 trillion by 2030. Institutional participation is already evident: major asset managers including BlackRock, JPMorgan, and Franklin Templeton are piloting tokenised fund models, while sovereigns from Hong Kong to the European Union are issuing digital bonds. Tokenised structures deliver tangible operational advantages, including smart-contract execution, real-time net asset value (NAV) tracking, expanded investor accessibility, and enhanced settlement efficiency.
Cayman's emergence as a centre for tokenised funds reflects its established infrastructure advantage. The jurisdiction already hosts over 30,000 investment funds with $16 trillion in total assets under administration and serves as home to approximately 58% of crypto and digital asset hedge funds globally. These existing competitive strengths—combined with the new legislative certainty—position Cayman to capture significant market share as tokenisation of real-world assets scales internationally.
The three amended Acts—the VASP Act, the Mutual Funds Act, and the Private Funds Act—provide regulatory clarity by explicitly excluding tokenised fund interests from Virtual Asset Service Provider (VASP) licensing requirements. This carve-out eliminates dual-licensing risk that previously deterred fund managers and service providers from operating tokenised structures, creating a clearer pathway for institutional participation in the space.
Tokenisation of real-world assets is accelerating globally as capital markets shift toward digital infrastructure. Industry estimates suggest the market for tokenised assets could reach $10 trillion by 2030. Institutional participation is already evident: major asset managers including BlackRock, JPMorgan, and Franklin Templeton are piloting tokenised fund models, while sovereigns from Hong Kong to the European Union are issuing digital bonds. Tokenised structures deliver tangible operational advantages, including smart-contract execution, real-time net asset value (NAV) tracking, expanded investor accessibility, and enhanced settlement efficiency.
Cayman's emergence as a centre for tokenised funds reflects its established infrastructure advantage. The jurisdiction already hosts over 30,000 investment funds with $16 trillion in total assets under administration and serves as home to approximately 58% of crypto and digital asset hedge funds globally. These existing competitive strengths—combined with the new legislative certainty—position Cayman to capture significant market share as tokenisation of real-world assets scales internationally.
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