Virginia Pension Fund Aims To Boost Its Returns Using Yield Farming

  • The Fairfax County Retirement Systems will invest in yield farming schemes.
  • Chief investment officer Katherine Molnar spoke about the strategy in an interview.
  • The regulatory landscape in the U.S. is changing, and with that, more incumbent institutions may warm up to crypto.

The Fairfax County Retirement Systems, a pension fund in the state of Virginia, will invest in yield farming schemes in a bid to boost returns in its fund. Chief investment officer of the Fairfax County Police Officers Retirement System Katherine Molnar said that some of the yields are really attractive, among other things.

The Fairfax County Retirement Systems decided to add crypto as part of its portfolio in May 2022. It has also invested in blockchain before, through the Morgan Creek Blockchain Opportunities Fund. Fairfax’s crypto holdings amount to more than 8% of its portfolio.

Regarding the technology and its potential, Molnar seemed keen, saying,

“For those that are still willing to provide liquidity, decent profit seekers, they’re actually able to earn more attractive yields at the moment…we were at a conference and we heard an academic who teaches a course on the topic speak. We were really intrigued by the promise of the technology and its products.”

The overall impression that Molnar and others gave was one of hope. Molnar believes that “things will bounce back and the stronger technologies will probably survive.”

This is yet another milestone for the crypto market, which has seen a lot of ups and down in recent months. The fact that a pension fund is investing in the crypto lending space after the recent fallouts of major players is a strong sign of conviction in the market.

Crypto Marches Forward Despite Hiccups

The crypto market has endured a lot over the past few months, but that hasn’t stopped it from marching on in its path towards global adoption. The DeFi market continues to grow, and more countries are beginning to recognize the asset class as a legitimate one.

With that comes certain changes, like regulation, which in the short term may cause some pain. With the fall of UST, stablecoins, in particular, have come under the radar of authorities.

The United States is set to regulate the crypto market by 2023 latest, while others like Brazil are already well on their way. Regulation is not inevitable, but the current sentiment seems to be one of acceptance, as opposed to draconian clampdowns.

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