The state of Texas is making a major change in its strategic Bitcoin reserve management. Rather than holding its approximately $10 million in Bitcoin through an exchange-traded fund (ETF), Texas will now maintain direct control and custody of these assets. Officials have already begun evaluating firms capable of providing secure custody and liquidity services required for this transition. Experts consider the move a turning point in how digital assets are handled at a state level in the United States.
Search begins for official service provider
On May 7, the Texas Comptroller’s Office announced it would accept applications from firms able to offer comprehensive custody, liquidity, and reporting infrastructure for digital assets. Currently, the state’s Bitcoin holdings are kept in BlackRock’s iShares Bitcoin Trust (IBIT), but authorities emphasize that this setup is not a long-term solution. The goal is to shift to a model where Texas maintains full, direct ownership over its digital reserves.
Texas officials stated, “We are seeking a partner responsible for acquiring, safeguarding, managing, and reporting on all digital assets. All assets must be registered under the official name of Texas.”
The winning firm will be authorized not only to custody Bitcoin but also other regulatory-compliant cryptocurrencies. Transparency and detailed reporting will be ensured throughout every stage of the process, signaling tighter oversight of the state’s digital holdings.
Timeline set for IBIT to Bitcoin conversion
The chosen custody provider will be responsible for converting the state’s current IBIT positions into direct Bitcoin holdings within 60 days. This shift represents a move away from ETF-based exposure to actual ownership of the underlying asset, granting Texas unprecedented control and flexibility over its Bitcoin reserves.
Officials have stressed the need for top-tier security protocols, robust key management systems, a secure custody infrastructure, and detailed audit-ready reporting. The service provider is also expected to support both purchase and sale transactions, ensuring liquidity management at all times.
Mini glossary: Custody services involve third-party professional institutions securely holding and managing digital assets on behalf of clients. This model is commonly preferred by large institutional investors for added security.
Advisory committee and transparency portal launched
Comptroller Kelly Hancock announced the formation of a Strategic Bitcoin Reserve Advisory Committee to oversee and guide the state’s reserve management strategy. The committee includes Laurie Dotter, Jamie McAvity, Carla Reyes, and Gary Vecchiarelli, who bring expertise in institutional investments, crypto mining, blockchain regulation, and corporate governance.
Additionally, the state is creating a public transparency portal that will allow residents to easily monitor the current value and custody status of Texas’s digital assets. This platform will provide up-to-date information and real-time valuations, ensuring continued public accountability.
Applications for custody and liquidity service providers will be accepted through June 15, after which the selected firm will be tasked with quickly initiating the operational handover.
From policy to practice
Texas accelerated its plans to build a crypto reserve following recent legislative approval. The rationale is that Bitcoin could offer strategic protection against economic uncertainty and inflation. These decisions, previously only on paper, are now moving into real-world execution with the new procedures coming into effect.
| Current Model | Target Model |
|---|---|
| ETF position via IBIT | Direct custody of Bitcoin in state’s name |
| 100% managed by a third party (ETF company) | Fully independent, state-controlled custody |
| Approximately $10 million in value | All assets transferred within 60 days |
