Fairfax County, Virginia is considering investing annuities in yield farming crypto funds

Fairfax County, Virginia is considering investing in two crypto funds that use yield farming for their pension funds. A decision will be made in the next few days and if passed would be the first case in which pension fund funds would be involved in DeFi.

Bloomberg reports that pension funds in Fairfax County, Virginia are considering whether pension fund money should cover crypto funds that use yield farming. This is the first instance of pension fund money being used to inject liquidity into decentralized exchanges. Specifically, two crypto funds are being considered.

This step still has to be approved, a decision should be made in the coming days. Katherine Molnar, chief investment officer of Fairfax County’s Police Officers Retirement System, announced the development at the Milken Institute Global Conference in Los Angeles.

Fairfax has already invested in the blockchain and crypto space. It first put pension fund money into crypto assets in 2019, and returns on that are expected to be 9%. Overall, Fairax’s crypto holdings account for more than 8% of its portfolio.

The executive director released a note on the agency’s blockchain-related investments, saying that it had invested in the Morgan Creek Blockchain Opportunities Fund. The Employees’ Retirement System (ERS) committed a $10 million investment, while the Police Officers Retirement System (PORS) made a commitment of $11 million.

Molnar said Fairfax views the move as a growth investment. Making a foray into the DeFi space isn’t the only traditional consideration, as Wall Street giants are also considering it.

Wall Street’s Jane Street to borrow via DeFi

Trading firm Jane Street announced on May 3 that it would use DeFi to lend crypto. It plans to borrow up to $25 million in USDC and potentially increase that number to as much as $50 million.

Jane Street will borrow funds from BlockTower Capital and use the Clearpool DApp. Nothing is known about how the funds will be used. What is absolutely certain is that this move by the trading firm will be closely watched by others on Wall Street.

It could potentially spark a wave of new loans from traditional businesses, further increasing DeFi’s explosive growth potential. ClearPool has reportedly spoken to dozens of other traditional Wall Street firms.

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