For its pension funds, Fairfax County, Virginia, is considering investing in two crypto funds that use yield farming. A decision will be made in the coming days, and if approved, this will be the first time that pension fund money has been used in DeFi.
According to Bloomberg, pension funds in Fairfax County, Virginia, are debating whether or not to cover crypto funds that employ yield farming. This is the first time that money from a pension fund has been utilized to boost liquidity on a decentralized market. There are two crypto funds in particular that are being evaluated.
This move is still pending approval, with a decision expected in the next days. At the Milken Institute Global Conference in Los Angeles, Katherine Molnar, Chief Investment Officer of the Fairfax County Police Officers Retirement System, announced the news.
Fairfax has already made investments in the blockchain and cryptocurrency space. It invested money from pension funds in crypto assets for the first time in 2019, with estimated returns of 9%. Fairax’s crypto holdings account for more than 8% of its total portfolio.
The agency’s blockchain-related investments were announced in a message by the Executive Director, who stated that it had invested in the Morgan Creek Blockchain Opportunities Fund. The Employees’ Retirement System (ERS) has pledged to invest $10 million, while the Police Officers Retirement System (PORS) has pledged $11 million.
Fairfax, according to Molnar, saw the move as a growth investment. It isn’t the only traditional company considering a move into the DeFi industry; Wall Street behemoths are also considering it.
Jane Street on Wall Street will take out a loan through DeFi.
Jane Street, a trading firm, said on May 3 that it will use DeFi to borrow cryptocurrency. The idea is to borrow up to $25 million in USDC, with the possibility of increasing that to $50 million.
Jane Street will use the Clearpool DApp to borrow cash from BlockTower Capital. There’s no indication yet on how the money will be spent. What is certain is that the trading firm’s move will be keenly scrutinized by others on Wall Street.
It has the potential to trigger a wave of fresh borrowings from traditional organizations, significantly enhancing DeFi’s rapid development potential. Hundreds of other traditional Wall Street firms are said to have spoken with ClearPool.
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