Texas Issues RFP to Move $10M Bitcoin Reserve from ETF to Direct Custody

Texas is taking a concrete step toward directly holding Bitcoin: the Comptroller’s office has issued a request for proposals (RFP) to find a custody and liquidity provider for the state’s Strategic Bitcoin Reserve. Quick summary - RFP posted: May 7. Vendors have until June 15 to respond. - Current exposure: roughly $10 million through BlackRock’s iShares Bitcoin Trust (IBIT), used as an interim vehicle. - Goal: move from ETF exposure to Bitcoin held directly in a third‑party custody structure, with the transition supported within 60 days of contract execution. - Scope: custody, key management, operational controls, reporting, liquidity services (buy/sell support), and a public website displaying holdings, values and educational materials. - Advisory committee named to advise on the reserve’s management. What Texas is seeking The Texas Comptroller’s office wants a qualified institutional custody and liquidity provider to help the state buy, hold, manage and report Bitcoin — and potentially other qualifying crypto assets over time. The RFP requires secure asset storage in the name of the State of Texas, institutional‑grade security features (key management, operational controls, secure custody tooling), and ongoing reporting and transparency. Why this matters So far Texas’ Strategic Bitcoin Reserve has only price exposure to Bitcoin through IBIT, BlackRock’s ETF — a temporary arrangement while the state prepared the systems and policies needed for direct custody. Moving to directly held BTC would give Texas operational control over the coins (and associated custody responsibilities), increase transparency for the public, and create a new institutional business opportunity for custody/liquidity firms. Accountability and transparency Acting Texas Comptroller Kelly Hancock emphasized the need for “transparency, security and strong financial controls.” The selected provider must also build a public-facing website to disclose reserve holdings, valuations and educational resources — reflecting a push for open reporting at the state level. Advisory committee Hancock named the Texas Strategic Bitcoin Reserve Advisory Committee to guide reserve governance. Members include Laurie Dotter, Jamie McAvity, Carla Reyes, and Gary Vecchiarelli, bringing experience across investment management, Bitcoin mining, digital asset law, finance and corporate governance. The committee will advise on custody, risk rules, valuation, reporting and digital asset management. Process and next steps - RFP posted May 7; vendor responses due June 15. - The winning provider will be expected to support the transition from ETF exposure to directly custodied Bitcoin within 60 days of signing the contract. - While Bitcoin is the primary asset today, the RFP leaves room for adding other qualifying cryptocurrencies later. Context The procurement is an operational move that follows earlier legislative efforts in Texas to create a state-level Bitcoin reserve. It also arrives amid broader U.S. policy discussions about strategic Bitcoin reserves and domestic mining, positioning Texas as one of the more proactive states experimenting with public Bitcoin holdings. What to watch Watch for which custodians and liquidity providers bid, how they propose to structure state ownership and controls, and the public reporting tools they build — all of which could shape future state-level crypto reserve efforts elsewhere.