Fairfax County Invests $35M into VanEck Crypto Lending Fund

Fairfax County Invests $35M into VanEck Crypto Lending Fund

July 6, 2022 0 By Jeanine Sanchez

Fairfax County in Virginia is continuing its investment into cryptocurrency outfits. The latest beneficiary is VanEck, a crypto lending fund. The county is exploring the yield farming space via asset management firms.

Taking the Lead in Hard Times

Fairfax has only put in the first installment of a planned $35 million budget. VanEck is a global asset company that manages cryptocurrency lending.

VanEck made an announcement of its reception of the first tranche of investment from Fairfax. The County is putting funds from two retirement schemes into some crypto-focused investment opportunities.

Fairfax had in the past mentioned that it would explore the DeFi sector yield farming. This is part of its support for the crypto space. The country started with its employees’ retirement system, however, a small portion.

The county also included funds from the Police retirement system. The investment into various crypto ventures started in 2018. 

As Fairfax keeps diversifying, its movement into DeFi has begun with VanEck. The specific investment in view is the New Finance Income Fund. The fund provides a short period of lending with crypto firms, businesses, and other platforms.

As reported by VanEck’s website, the fund lends stablecoins and fiat to borrowers. This is, however, limited to borrowers in the crypto space. With verified investors as its focus, VanEck provides high-yielding income exposure to crypto.

VanEck is the Best for Now

The fund requires only a million-dollar preliminary investment. VanEck boasts of a simple approach that removes the burden of operation on direct lending.

Fairfax is gradually increasing its funding of the DeFi space. It has committed funds to seven crypto-focused ventures so far. One of these ventures plans to make profits from the current volatility.

A hedge fund is also planning to leverage the yield farming space. It equally looks at basis trading as well as exchange opportunities.

Fairfax County has published an update on its investments in blockchain and cryptocurrencies. It has employee and Police system funds in Morgan Creek’s Blockchain Funds. It invested to the tune of $10m and $11m respectively.

The allotment pulled from both funds is under 1% of their asset under management. The county is slowly measuring the potential of investments in the other asset classes.