TLDR
- Texas plans to move its Bitcoin reserve from IBIT into direct BTC custody
- Texas seeks a crypto custodian for its state Bitcoin reserve transition
- Texas targets direct BTC custody after using IBIT as an interim reserve tool
- Texas opens provider search for Bitcoin custody, liquidity, and reporting
- Texas Bitcoin reserve shift moves from ETF exposure to direct BTC control
Texas is preparing to move its Strategic Bitcoin Reserve from ETF exposure into directly held Bitcoin. The state has opened a search for a custody and liquidity provider. The step turns its Bitcoin reserve plan into an operational procurement process.
Texas Opens Search for Bitcoin Custody Provider
The Texas Comptroller of Public Accounts posted a request for proposals on May 7. The document seeks firms that can manage custody and liquidity services. It also covers reporting systems for the Strategic Bitcoin Reserve.
Texas currently holds about $10 million in Bitcoin exposure through BlackRock’s iShares Bitcoin Trust. The ETF served as an interim vehicle while the state prepared direct custody systems. However, the new plan moves the reserve toward direct Bitcoin ownership.
The selected provider will acquire, hold, manage, and report the reserve’s digital assets. The mandate also covers assets beyond Bitcoin if they qualify under state rules. Moreover, the provider must hold assets in the name of the State of Texas.
Reserve Will Move From IBIT to Direct BTC
The procurement document sets a clear transition target for the reserve. The winning firm must help shift IBIT exposure into directly custodied Bitcoin. That move must happen within 60 days after contract execution.
Direct custody changes how Texas manages its Bitcoin reserve. IBIT gives price exposure through an exchange-traded fund structure. However, direct custody places Bitcoin under a state-arranged third-party custody framework.
The RFP also requires institutional-grade controls for storage and operations. These controls include key management, secure custody tools, transaction support, and custom reporting. Additionally, the provider must support liquidity services for future purchases and sales.
Advisory Committee Guides Reserve Controls
Acting Comptroller Kelly Hancock also named the Strategic Bitcoin Reserve Advisory Committee. The committee will advise the state on custody, risk, valuation, and reporting. Its role also includes broader guidance on digital asset management.
The panel includes Laurie Dotter, Jamie McAvity, Carla Reyes, and Gary Vecchiarelli. Their backgrounds cover investment management, Bitcoin mining, digital asset law, finance and governance. Therefore, the group brings experience across several parts of the crypto market.
Texas also wants a public website for the reserve. The site must show holdings, asset values, and educational material for the public. Vendors have until June 15 to submit proposals for the custody and liquidity contract.
The move follows earlier legislation that created the state-level Bitcoin reserve. Supporters framed Bitcoin as a strategic asset against inflation and economic volatility. Now, Texas has shifted from policy formation to reserve execution.
