Isle of Man plans to launch Data Asset Foundations which will allow data to be valued and used as collateral for finance

The Isle of Man is launching a new Data Asset Foundation (DAF) initiative as part of its efforts to make the island a 21st century financial hub, which will allow for data to be valued and used as collateral for finance purposes, amongst other things.

The initiative, a partnership between Digital Isle of Man (an executive agency of the IoM Government’s Department for Enterprise) and international global association for data management, the EDM Association, involves the creation of a new type of legal structure under Manx law, a licensed Data Asset Foundation (DAF), made possible under the Isle of Man Foundations Act 2011.

Digital Isle of Man says DAFs will operate under a clear set of rules and roles, ensuring data is used responsibly, compliantly and for the purposes agreed by its contributors, while allowing the data to be monetised. DAFs will hold a company’s data so that it can be traded or used as collateral for financial purposes such as securing equity and debt funding, and included on the balance sheet, the agency suggests.

In a statement, Lyle Wraxall, Chief Executive of Digital Isle of Man, said:

"This partnership puts the Isle of Man ahead of the curve. We’re not just keeping up with change – we’re setting the direction. By creating a trusted way for organisations to govern and use data, we’re opening up new opportunities for investment, innovation and skilled jobs, all while building a digital economy the Island can be proud of."

“This isn’t just about managing data better, it’s about putting the Isle of Man on the map as the home of a new kind of data economy. It’s about releasing value from data in a transparent, fair and responsible way and leading from the front."

As the initiative enters its next phase, Digital Isle of Man will finalise the legal framework ahead of progressing to Tynwald, the Island’s parliament, then begin onboarding pilot foundations and collaborating with key sectors including finance, tech and public services.

The Executive Agency will be working with local industry to finalise the legal framework, build practical tools and deliver the infrastructure needed to bring Data Asset Foundations to life.

According to an article from Raconteur, Isle of Man races to legislate for world-first data marketplace, Digital Isle of Man is working with law firm Pinsent Masons on a governance framework that aims to simplify the classification of data as a financial asset.

The piece quotes Kurt Roosen, head of innovation at Digital Isle of Man, as saying:

“We’re creating a context here that other jurisdictions will accept… Some of the legal work we’re doing includes definitions of data assets – nowhere else in the world defines those.”

The EDM Association (which until the beginning of July 2025 was known as the EDM Council) is a global non-profit association for data management, representing more than 350 organisations across six continents. It claims its best-practice frameworks and standards are trusted by leading financial, commercial and public sector bodies worldwide.

John Bottega, President of the EDM Association, said:

"Managing data as an asset and defining its financial value are key to driving better business outcomes in our data-driven world. EDM Council’s collaboration with the Isle of Man will help pioneer a trusted, transparent data economy. This partnership sets a new precedent in how data can be responsibly governed and commercially leveraged."

Digital Isle of Man suggests there are other potential applications for DAFs including:

• Sharing anonymised health data for medical research while protecting privacy.

• Businesses combining data securely to develop better products and services.

• Pooling environmental data to support green projects and sustainability goals, aligned with the Island’s UNESCO Biosphere status.

• Ensuring proper consent for large language models for AI.