As per reports, Fairfax County, Virginia, is planning to put pension fund money in two crypto funds that use the investment strategy of yield farming.
If the funds are approved in future, it will be used to provide liquidity on decentralized cryptocurrency exchanges, as per Katherine Molnar, chief investment officer at the Fairfax County Police Officers Retirement System.
Molnar also revealed that Fairfax has already made seven allotments to crypto over two pension funds, including venture capital funds and one structure that holds early-stage illiquid tokens and later-stage liquid tokens.
“We view this as a growth investment,” Molnar said.
Speaking at the Milken Institute Global Conference in Los Angeles on Tuesday, she revealed the department’s plans.
It is worth mentioning that Fairfax County was one of the first U.S. counties to keep pension money into crypto-connected investments in 2019.
Molnar expects that the investments must offer a yield of at least 9%. She further revealed that Fairfax’s crypto-related investments add up to more than 8% of its portfolio.
As a matter of fact, Fairfax’s stance on cryptocurrencies and investments were quite straightforward last year. The Fairfax County Employees’ Retirement System and Fairfax County Police Officers Retirement System had invested $50 million into Parataxis Capital Management LLC’s main fund, which trades several digital tokens and cryptocurrency derivatives.
Fairfax is the latest county to embrace the practice of decentralized finance, which allows trading, borrowing and lending often anonymously without agents like banks.
Recently, the Virginia Senate unanimously passed a bill for traditional banks operating in the Commonwealth of Virginia to provide crypto custody services if the resources to manage the risk are available.