Texas is moving from paper exposure to custody: the state has launched a formal search for a custody and liquidity partner to take its Strategic Bitcoin Reserve off an ETF and into directly held Bitcoin. The Texas Comptroller of Public Accounts posted a request for proposals (RFP) on May 7 seeking firms to provide custody, liquidity, reporting and related services for the reserve. Today the reserve’s Bitcoin exposure—roughly $10 million—is held indirectly through BlackRock’s iShares Bitcoin Trust (IBIT), an interim structure Texas used while it prepared systems for direct custody. The RFP lays out a roadmap to move those ETF holdings into Bitcoin held in a third‑party custody arrangement owned in the name of the State of Texas. What the state is asking for - Custody and secure storage of Bitcoin (and potentially other qualifying crypto assets in the future) in the State’s name. - Institutional-grade security, including key management, operational controls, secure custody tools and robust reporting. - Liquidity services to support purchases and sales when the reserve needs to trade. - A transition plan from IBIT ETF exposure to directly custodied Bitcoin, with the selected provider expected to support that move within 60 days of contract execution. - A public website maintained by the provider to display reserve holdings, current values and educational materials for the public. Why it matters IBIT allowed Texas to gain price exposure quickly while administrative and technical infrastructure were put in place. Direct custody would change the mechanics: coins would be held under a custody structure established specifically for the State, with a vendor responsible for the operational and security framework. The move signals Texas’ intention to operationalize its reserve rather than simply keep ETF exposure. Governance and oversight Acting Texas Comptroller Kelly Hancock also named members of a Strategic Bitcoin Reserve Advisory Committee to guide reserve policy and operations. The panel includes Laurie Dotter, Jamie McAvity, Carla Reyes and Gary Vecchiarelli—professionals with backgrounds in investment management, Bitcoin mining, digital asset law, finance and public company governance. Hancock emphasized the reserve must be run with “transparency, security and strong financial controls.” The committee will advise on custody, risk rules, valuation, reporting and digital asset management. Process and timeline Vendors have until June 15 to respond to the RFP. After submissions, the Comptroller’s office will evaluate proposals from firms that can provide direct custody, liquidity and the public reporting systems required to operate a state-level Bitcoin reserve. Context The move is an operational next step following earlier legislation and policy pushes to create a state-level Bitcoin reserve in Texas. It also comes amid broader U.S. discussion about strategic Bitcoin reserves and domestic crypto policy. For Texas, the RFP marks the transition from pilot exposure via an ETF to a fully operational, custodial reserve under state oversight. Read more AI-generated news on: undefined/news