Fairfax County, Virginia, has begun investing a portion of a $35 million grant in a cryptocurrency lending fund managed by global asset management firm VanEck.
The company Announce It has received its first investment commitment from Fairfax County, which distributes funds from two retirement systems into various cryptocurrency-focused investment channels.
Fairfax County has previously hinted at further research world Decentralized Finance (DeFi) Yield Farming As part of its progressive attitude towards the cryptocurrency space. County begins to invest in a small portion of the property From 2018, from its employee retirement system and police officers to various cryptocurrency companies and businesses.
As Fairfax continues to diversify its cryptocurrency investment strategy, its foray into the DeFi world has officially begun investing in VanEck’s new financial income fund. The fund provides short-term loan arrangements for cryptocurrency companies, platforms and businesses.
According to VanEck website, the fund lends fiat and stablecoins to borrowers in the crypto space. Targeting accredited investors, the fund offers high-yielding yield exposure to cryptocurrencies and requires an initial investment of $1 million. The investment manager touts “a simplified approach to ease the operational burden of direct digital asset lending.”
Fairfax County has slowly ramped up funding for the field, directing the funds to seven cryptocurrency-focused allocations. In one configuration aimed at profiting from volatility in the space, a hedge fund intends to take advantage of yield farming, basis trading and foreign exchange arbitrage opportunities.
The county has previously release An update on its investments in the cryptocurrency and blockchain space, with employee and police retirement systems investing $10 million and $11 million, respectively, into Morgan Creek’s Blockchain Opportunity Fund.
The two funds’ capital allocation is less than 1% of their total assets under management — as the county slowly assesses the investment potential of alternative asset classes.