Blockchain.com has secured a definitive Virtual Asset Service Provider custody services licence from the Cayman Islands Monetary Authority, allowing the company’s Cayman Islands subsidiary to provide regulated digital-asset custody and certain exchange services from the jurisdiction.
The licence, announced Aug. 6, moves Blockchain.com beyond the VASP registration it had held in the Cayman Islands since May 2022. CIMA initially granted the company conditional approval in December 2025, and Blockchain.com said it satisfied the remaining conditions on July 22, 2026.
Under the approval, the company can provide virtual-asset custody, exchange virtual assets for fiat currency, and exchange one convertible virtual asset for another. Blockchain.com said it intends to use the framework to offer institutional custody, institutional staking and retail staking services.
The authorisation gives the company a regulated base for products aimed at customers that need a formally supervised custody provider, rather than relying only on wallet infrastructure or services run from another jurisdiction. Custody licences have become increasingly consequential for firms handling client assets, as regulators place greater emphasis on operational controls, governance and asset-protection arrangements.
Cayman operations move toward a local presence
Blockchain.com also said it partnered with TechCayman in June. TechCayman helps international technology companies establish physical operations in the Cayman Islands, and the arrangement is expected to result in Blockchain.com’s first hire on the islands.
That step adds an operational component to the company’s Cayman structure. Virtual-asset firms have often used offshore jurisdictions for registrations or holding companies without building substantial local teams. A planned on-island employee suggests Blockchain.com is preparing to manage at least part of its regulated activity through a local operation as its licence takes effect.
Lane Kasselman, co-chief executive officer of Blockchain.com, said the Cayman Islands offers a forward-looking setting for financial innovation and described compliance frameworks as necessary to build trust across financial services.
The company did not provide a timetable for the launch of its Cayman-based custody or staking products, nor did it disclose the scale of the planned local operation. Its announcement described institutional custody as enterprise-grade digital-asset storage, while its staking services would provide customers with infrastructure to participate in blockchain network validation and receive staking rewards where applicable.
Staking can carry different regulatory and operational considerations from custody. In a staking arrangement, a provider may hold or help delegate customers’ assets to validators that support a proof-of-stake network. The structure of the service—particularly who controls the assets, how rewards are handled and whether customer funds are pooled—can affect the risks and rules attached to the product.
A conditional approval becomes a full operating licence
CIMA’s transition from conditional approval to a definitive licence marks the completion of a regulatory process that began with Blockchain.com’s application and continued through the conditions imposed in December.
The Cayman Islands’ Virtual Asset (Service Providers) Act took effect in 2020 and established a framework for businesses involved in issuing, transferring, storing, exchanging or otherwise providing services around virtual assets. The regime distinguishes between firms that are registered and those required to secure a licence for specific regulated activities.
For Blockchain.com, the definitive approval covers custody and exchange functions that sit close to customer asset handling. Those activities generally draw greater scrutiny than software-only products because they involve safeguarding assets and executing transactions between cryptoassets or between crypto and conventional currency.
Blockchain.com said CIMA oversees 21 digital-asset providers under the jurisdiction’s financial laws. The Cayman Islands has sought to combine its established financial-services infrastructure with a dedicated virtual-asset regime, attracting firms that want access to an offshore legal framework while facing more formal compliance requirements than a simple corporate registration process.
The licence also places Blockchain.com among companies seeking jurisdiction-specific authorisations as digital-asset businesses confront more fragmented rules across major markets. A single licence does not automatically permit a company to market services globally; firms generally need to match products, customer types and distribution plans to the laws of each market they serve.
Custody becomes a larger part of Blockchain.com’s business case
Blockchain.com reported that it has facilitated more than $1.1 trillion in transactions since its 2011 founding, served over 43 million verified users and supported more than 94 million wallets across more than 70 jurisdictions. Those figures were provided by the company.
Its Cayman licence could give the business an additional regulated route for custody and staking products, particularly for institutions seeking a provider with a defined supervisory framework. Large holders and professional asset managers often need to assess where assets are stored, which entity holds them and which regulator supervises the service before using a crypto platform.
The approval does not eliminate the risks associated with digital-asset custody or staking. Customers considering such services still face market volatility, technology failures, counterparty exposure and, in some cases, network-specific risks such as slashing penalties or withdrawal delays. A regulatory licence establishes obligations for the provider, but it does not guarantee asset values or prevent every operational loss.
Blockchain.com’s move follows a period in which regulatory permissions have become a central competitive issue for established crypto firms. Companies able to offer custody, exchange and staking under formal licences can pursue more structured institutional business, while unlicensed operators may face limits on where and how they can serve customers.
For Blockchain.com, the Cayman approval provides a completed regulatory foundation for expanding those services from a jurisdiction where it is now planning a physical presence, rather than maintaining only its earlier VASP registration.
To understand this regulatory milestone, explore our guide on VASP licences and their impact on global crypto services.
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