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Fairfax County, Virginia, plans to allocate pension money in 2 crypto funds

Updated: Jul 25, 2024
Published: May 4, 2022
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Blockchain adoption continues to rise across the globe as Fairfax County, Virginia, is considering allocating pension money in two separate crypto-based funds as per a new report from Bloomberg using an investment strategy called yield farming, the process of using decentralized finance (DeFi) to maximize returns.

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Fairfax County official unveils the plans

Katherine Molnar, chief investment officer at the Fairfax County Police Officers Retirement System, unveiled the plans of one of the first counties in the United States to put pension money in crypto-linked investments in 2019 at the Milken Institute Global Conference in Los Angeles on Tuesday.

As per Molnar, the funds, if approved by Fairfax County authorities, will be used to provide liquidity to decentralized exchanges or DEXs. Additionally, she confirmed that a minimum yield of around 9% is being expected, and as of now, the total crypto-linked investments of the country add up to 8% of the entire portfolio.

The county recently took a significant step in the world of crypto as the Fairfax County Police Officers Retirement System and Fairfax County Employees’ Retirement System invested $50 million into Parataxis Capital Management LLC’s main fund, which is focused on the purchase of cryptocurrencies and crypto-based derivatives. 

Fidelity has similar plans

As noted in a previous report from Cryptonary, Fidelity Investments, an American multinational financial services corporation that is also the largest provider of 401(k)s in the U.S., will allow employees to put their retirement funds into Bitcoin. However, the employer must agree to let employees to do the same. For now, MicroStrategy has become the first firm to take advantage of this new offering from Fidelity, while many others might follow. 

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