Texas Bitcoin Reserve to Shift From ETF to Direct Custody

Texas is seeking a custody and liquidity provider to move its Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Trust (IBIT) spot Bitcoin exchange-traded fund (ETF) into directly held coins, the state procurement document shows. The move, posted May 7 and announced in a Thursday release from the Texas Comptroller’s office, would shift the reserve from ETF exposure to direct onchain ownership under a third-party custody arrangement.

The state has allocated $10 million to the Strategic Bitcoin Reserve and has used IBIT as an interim holding before moving to directly custodied Bitcoin, the request for proposals says. The winning firm would acquire, hold, manage and report the state's Bitcoin and any other qualifying cryptocurrency holdings, provide secure custody in the name of the State of Texas, offer liquidity services to facilitate purchases and sales, and deliver a transition plan to move existing IBIT holdings into directly custodied Bitcoin within 60 days of contract execution.

United States, Texas

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