RYKI, a digital asset services firm operating in the Cayman Islands, has received conditional Phase 2 approval under the jurisdiction’s Virtual Asset Service Provider (VASP) regulatory regime, with the Cayman Islands Monetary Authority (CIMA) granting custody authorisation on 25 Dec 2025.
The conditional approval establishes RYKI as a licensed custodian authorised to securely store digital assets on behalf of clients, marking the most significant milestone in the firm’s regulatory journey.
“Advancing to conditional Phase 2 approval represents a significant milestone for RYKI after four years of operating as a registered entity in the Cayman Islands,” said Lennon Sweeting, Managing Director at RYKI. “As a Cayman-based firm built specifically to serve this market, pursuing advanced regulatory status was a natural step in our evolution. We’ve seen firsthand that local institutional clients and fellow VASPs increasingly value the assurance that comes from working with regulated firms that are deeply rooted in the jurisdiction. This approval positions us to continue growing alongside the Cayman Islands’ maturing digital asset sector.”
As a licensed custodian, RYKI will be able to provide institutional-grade custody solutions that eliminate the need for clients to manage private keys or hardware wallets. This service model parallels the secure safekeeping traditionally associated with private banking but adapted for the digital asset ecosystem.
RYKI initially received VASP registration from CIMA during Phase 1 of the regulatory rollout. This approval underpinned an array of services spanning OTC trading for high-value transactions with same-day settlement, and bespoke solutions including trading mandates, multi-jurisdictional structuring, and specialised execution flows for clients with complex requirements.
The conditional approval as a licensed custodian arrives as cryptocurrency adoption continues to expand in the Cayman Islands, where digital asset activity has grown substantially across both peer-to-peer channels and commercial applications.
Industry observers note that whilst demand for cryptocurrency services has increased markedly, the market is now moving toward comprehensive regulated infrastructure that can support retail and commercial use at scale.
As a conditionally approved custodian, RYKI provides users with protections associated with licensed entities. For consumers, this means access to digital asset services through a firm subject to CIMA’s supervisory framework, including capital adequacy requirements, operational standards, and ongoing compliance obligations.
For businesses, particularly those operating in real estate, legal services, fund administration, asset management, family offices and other professional services the availability of licensed custody and regulated cryptocurrency infrastructure offers new commercial opportunities for growth while maintaining the security and compliance standards expected in the jurisdiction’s established financial services sector, RYKI said.
