Crypto and decentralized financing: A US state creates history

Nothing works anymore! – Tofor the first time in historymoney from a pension fund (subject to approval of the decision) will be set aside for decentralized economy (Challenge). That Investment Director of the Fairfax County Police Retirement System in Northern Virginia, announced at conference arranged by The Dairy Institute, take the step to decentralized financing. Fairfax County already has one positive passive with the world of cryptocurrencies. Part of the County’s funds have already been invested in crypto and blockchain start-ups. But to get into yield breeding is part of an initiative much more highlighted Again.

DeFi yes, but cautiously

All in good time, especially when it comes to DeFi for Virginia County.

Katherine MolnarInvestment Director of the Fairfax County Police Retirement System, says she wants to allocate a small amount of funds to a hedge fund, which partly operates in DeFi farming. The exposure of County funds to cryptocurrency and blockchain space remains limited due to embryonic stage of the sector. However, these investments seem joy leaders which goes even further into the experience.

At the moment, it’s so inside 7 crypto projects that the pension fund is invested. According to Katherine Molnar at the Milken Institute Global Conference, 2 new hedge funds focused on the crypto area should receive a portion of their capital.

Claim of the presence of a pension fund on the sea that is DeFi is a little hasty in facts. As said earlier, only part of the funds come from themselves 8% allocated to the sector will be placed in a hedge fund that operates partially in yield breeding on DeFi. We are therefore a little far from a revolution in the world of pension funds. But this small step is actually first in the world today.

The purpose of the pension fund in this investment is to succeed in creating a return of up to 9%. This achievement would replace (better) one classic fixed return. Needless to say, the pension fund does not end up on pancake exchanges to grow the cake.

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DeFi worries more than one

Illustration of stress from certain regulators in relation to DeFi

“All investments involve risk and this is no different. However, the Fairfax team determined that the expected return on this product was commensurate with the level of risk. This also played a large role in the amount invested. I hope this will help you , our members and stakeholders to better understand this process. “

Jeffrey Weiler, CEO. Source: fairfaxcounty.gov

After this statement, which must have worry more than onethe county of Fairfax wanted to clarify the subject and reassure the most reluctant. Fairfax County Pension CEO Jeff Weller then issued one explanatory note on the county administrative board’s official website. The memorandum briefly describes what the investment consists of popularization of the blockchain aspect. She relativize also risk exposure. In fact, this exposure is not unique to DeFi, but common to any investment.

This news should delight crypto enthusiasts through the symbol it carries. For the first time in history is decentralized financing attracts a pension fund. His picture of Wild West 2.0 comes out calmly. Fairfax County’s move could signal the start of one New era which, crossing fingers, will eventually normalize investment in Challenge. Note that the position of the Fairfax Pension Fund is also particularly commendable of his transparency.

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