Cayman Finance reports that nine tokenised investment funds are now registered with the Cayman Islands Monetary Authority, on a conditional basis, marking an important milestone as the tokenisation of real-world assets gathers momentum globally. The number is expected to grow following coordinated amendments to three Acts passed in March 2026: the VASP Act, the Mutual Funds Act, and the Private Funds Act. Together, these establish a statutory framework for tokenised fund structures.
The new legislative framework explicitly excludes tokenised fund interests from the Virtual Asset Service Providers (VASP) regime, eliminating dual-licensing risk and providing fund managers and service providers with the regulatory certainty to move forward. The legislation has been introduced as global capital markets increasingly move towards tokenisation, with industry estimates suggesting the market for tokenised real-world assets could reach $10 trillion by 2030. Large asset managers, including BlackRock, JPMorgan and Franklin Templeton, are piloting tokenised fund models, and governments from Hong Kong to the European Union are issuing digital bonds.
Cayman’s existing strengths make it the natural home for the tokenisation market as it scales. The jurisdiction is the world’s largest offshore funds domicile, with more than 30,000 registered funds representing $16 trillion in total assets. It also hosts approximately 58% of crypto and digital asset hedge funds globally and many of the largest Web3 foundations.
For fund managers and investors, the benefits of tokenisation are significant. Tokenisation enables smart-contract execution, real-time NAV tracking, greater investor accessibility and enhanced operational efficiency, alongside the improved liquidity and round-the-clock transferability. Tokenised fund interests carry the same rights and protections as conventional fund interests, reinforcing investor safeguards while opening new avenues for innovation.
Haymond Rankin, Associate Director for the Banking, FinTech, and Virtual Assets at Cayman Finance, said: “The nine tokenised funds now registered in Cayman tell us where the funds industry is heading. Tokenisation is changing how fund interests are issued and transferred, and the institutional pipeline is growing accordingly. The March 2026 amendments gave managers something they had been missing: a clear statutory route for tokenised fund structures, without the dual-licensing risk that had been slowing decisions. With the new framework now in place, Cayman's depth in fund management, virtual assets and tax-neutral structuring puts the jurisdiction in an even stronger position as institutional adoption of tokenisation grows.”