Key Takeaways:
Texas opened a search for a Bitcoin custodian to move its $10 million strategic reserve from BlackRock's iShares Bitcoin Trust into directly held BTC within 60 days.
"The Legislature gave the Comptroller's office a clear responsibility to administer the Texas Strategic Bitcoin Reserve, and that work must be done with transparency, security and strong financial controls," Kelly Hancock, acting Texas comptroller, said.
The reserve currently holds about $10 million in Bitcoin exposure through IBIT, an interim structure used while Texas prepared systems for direct custody. The selected provider will acquire, hold, manage and report Bitcoin and other qualifying crypto assets, with institutional-grade security including key management and operational controls. The request for proposals, posted May 7 on Texas SmartBuy, gives vendors until June 15 to respond.
The transition marks a shift from ETF-based price exposure to direct state custody of Bitcoin, a structure that could serve as a template for other states exploring similar reserves. The selected firm must also build a public website displaying reserve holdings and educational materials.
Hancock also named four members to the Texas Strategic Bitcoin Reserve Advisory Committee, created under Senate Bill 21 by the 89th Legislature. The panel includes Laurie Dotter, who chairs the Investment Advisory Board for the Employees Retirement System of Texas; Jamie McAvity, founder and chief executive officer of Cormint Data Systems, a Texas-based bitcoin miner; Carla Reyes, a law professor at Southern Methodist University and member of the Commodity Futures Trading Commission's Innovation Advisory Committee; and Gary Vecchiarelli, president and chief financial officer of CleanSpark. The committee will advise on custody policies, risk controls, digital asset valuation and reporting standards.
The RFP requires the selected firm to support the transition from IBIT to direct custody within 60 days of contract execution. The reserve may also include other qualifying cryptocurrencies over time, though Bitcoin remains the primary asset under the current structure.
This article is for informational purposes only and does not constitute investment advice.
