European ‘web3’ firm moves to Cayman

The Cayman Islands’ reputation as an emerging tech hub took another step forward today with the news that a Swiss company is setting up in the jurisdiction.

ShoreLabs announced on 17 Oct. that it was establishing a new operation in Cayman Enterprise City. ShoreLabs has three main business areas: an incubator service for start-ups; a due-diligence platform for venture capital firms that invest in start-ups; and a tech-based compliance platform.

Web3 companies build products or provide services that use blockchain technology or other decentralised systems. It’s called web3 because unlike web2 companies – for example Facebook (Meta) – that store data and control services through central servers – web3 companies operate on distributed networks.

ShoreLabs will focus on web3 start-ups and venture capital funds that invest in the space. Its older, sister company, Sweetspot, is a virtual asset service provider based in Switzerland, yet founder Anna Muheim believes the Cayman Islands is a more attractive destination for new web3 ventures.

One of the main advantages is legal clarity, says Muheim. “You know exactly what you can and can’t do, which isn’t always the case in Europe. Web3 projects favour foundations, but Swiss foundations have rigid, permanent purposes and aren’t designed for modern blockchain governance. Cayman foundations give more flexibility because they have adaptable by-laws.”

Muheim, who also investigated Dubai as a possible location for ShoreLabs, says that geography is also a factor. “From Switzerland it’s hard to serve US and Latin American clients; Cayman’s time zone and proximity are ideal.”

Cayman Enterprise City

An extra bonus working in the jurisdiction’s favour is tech-focused free zone, Cayman Enterprise City. “Enterprise City’s advantages include fast-tracked licensing [comprising] a business/trade licence and five-year work permit,” said Muheim.

“We looked at other options, such as forming an exempted company, but it is cheaper to be in Cayman Enterprise City. We also get the office space included here.”

Cayman Enterprise City now has more than 450 registered companies. As it grows, it creates an ecosystem of tech firms that helps to attract more. “We might end up doing business with the other companies based in the zone,” said Muheim.

The rising number of international companies in Enterprise City also strengthens Cayman’s links with the global tech community. “We expect a big impact from being here, connecting our clients with Cayman’s jurisdictional advantages,” said Muheim. “Cayman is not a postbox jurisdiction – it’s a real, maturing hub for regulated innovation.”