Cayman Islands: CIMA Publishes Tokenised Funds Approval Policy

The Cayman Islands Monetary Authority (“CIMA”) has published its Regulatory Policy on Approval of Tokenised Funds (the “Policy”), gazetted on 7 October 2026.

The Policy establishes the criteria and procedures for CIMA’s assessment of applications for registration or licensing of tokenised funds under the Mutual Funds Act and the Private Funds Act. It applies to new applicants, existing regulated funds seeking approval to operate as tokenised funds, and applications where CIMA determines that a proposed structure constitutes a tokenised fund.

Applicants must submit a completed Tokenised Fund Questionnaire through CIMA’s Regulatory Enhanced Electronic Forms Submission (REEFS) platform. CIMA may review the fund’s offering document, constitutional documents, governance framework, business continuity arrangements and other relevant materials, and may impose conditions on approval. Where conditional approval is offered, the applicant must confirm its concurrence in writing within five business days.

CIMA’s assessment will focus on compliance with applicable legislation and regulatory measures, investor protection, governance and risk management, the integrity of investor records, appropriate investor disclosures and the management of material regulatory and operational risks.

Approved tokenised funds are expected to maintain secure, accurate and auditable records of token issuance, transfers and redemptions. Operators are also expected to notify CIMA promptly of specified material operational issues, including disruptions affecting issued tokens or an inability to redeem tokens within a reasonable period. Material changes to approved tokenisation arrangements must be notified to CIMA as soon as reasonably practicable.

The Policy took effect upon gazettement. Fund sponsors and operators considering tokenisation should assess the Policy’s application to their proposed or existing structures and the associated regulatory approval and ongoing compliance requirements.

Stuarts Investment Funds and Regulatory team can assist sponsors and fund operators with the structuring, establishment and launch of new tokenised investment funds in the Cayman Islands, including advising on applicable regulatory requirements and CIMA approval processes.

The Policy is available in the Cayman Islands Gazette, Extraordinary No. 73/2026.

For further information, please contact your usual Stuarts Humphries attorney or the firm’s Investment Funds and Regulatory teams at info@stuartslaw.com.