Fairfax County, Northern Virginia, has already invested part of its pension fund in cryptocurrency and blockchain startups. We are currently looking at the deeper involvement of decentralized finance (DeFi) in yield agriculture.
Catherine Morner, Chief Investment Officer of the Fairfax County Police Pension System, said at the Milken Institute’s Global Conference on Tuesday that the system will fund two new crypto-focused hedge fund managers over the next three weeks. Said that it aims to provide. A decision will be made in the next few days. If approved, this is the first time that pension fund funds have been used on DeFi.
According to Molnar, Fairfax has already committed to seven crypto funds across two pension funds, including a venture capital fund and one structure that holds early-stage illiquidity tokens and late-stage liquidity tokens. doing. Another approach to benefiting from volatility is one of seven categories. This includes hedge funds that employ a variety of cryptocurrency techniques, including yield farming, basis trading and cross-exchange arbitrage.
Fairfax County is no stranger to the blockchain and crypto sector. In 2019, we will start investing pension fund cash in cryptocurrencies and expect a 9% return. Fairfax crypto assets make up about 8% of the total portfolio.
Executives noted that they had invested in the Morgan Creek Blockchain Opportunity Fund and issued a statement on the agency’s blockchain-related investment. The Employee Retirement Program (ERS) promised to invest $ 10 million, and the Police Officer Retirement Program (PORS) promised to invest $ 11 million. Molnar likened yield farming to a bond alternative or an opportunity for higher returns than interest rate sensitive assets.
Related: Australia’s Rest Super Retirement Fund Investing in Cryptography for Its 1.8 Million Members
The United States ranked first in the 2021 Global DeFi Adoption Index. This index tracks the countries with the highest grassroots adoption. DeFi adoption is significantly advanced, especially in high-income countries that are already using significant cryptocurrencies, especially among traders and institutional investors. Entering the Fairfax market only strengthens the case of US DeFi adoption.
