Texas seeks custodian to convert $10M Bitcoin ETF into coins
Texas issued an RFP seeking a custody and liquidity provider to move its $10 million Strategic Bitcoin Reserve from BlackRock’s IBIT ETF into directly held Bitcoin.
The Texas Comptroller’s office posted a request for proposals on May 7 seeking a custody and liquidity provider to convert the state’s $10 million Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Trust (IBIT) spot-Bitcoin ETF into directly held Bitcoin under a third-party custody arrangement.
The procurement requires the selected firm to acquire, hold, manage and report the reserve’s Bitcoin and any other qualifying large-cap digital assets. The vendor must provide custody in the name of the State of Texas and offer liquidity services to facilitate purchases and sales.
The RFP sets a 60-day deadline for moving existing IBIT holdings into directly custodied Bitcoin after contract execution. It allows for the possibility that additional qualifying large-cap cryptocurrencies may be added to the reserve over time.
Security and reporting requirements are described as institutional grade. The document requires operational controls, auditing support, standard and custom reports for state officials, and a public website that displays the reserve’s holdings and valuation.
Acting Comptroller Kelly Hancock announced the formation of the Texas Strategic Bitcoin Reserve Advisory Committee and named members in the same release. The panel includes investment executive Laurie Dotter; Jamie McAvity, founder and CEO of Cormint Data Systems; Carla Reyes, law professor and digital asset scholar at Southern Methodist University; and Gary Vecchiarelli, president and CFO of CleanSpark. The committee will advise on custody arrangements, risk management, disclosure of holdings and performance, and governance of the reserve’s investment strategy.
The $10 million allocation for the Strategic Bitcoin Reserve was set by state legislation that created the program. The state used shares of IBIT as an interim vehicle to hold Bitcoin exposure while it seeks a firm to move the holdings onchain under a custody arrangement.
The procurement document emphasizes ongoing oversight and public disclosure to ensure the reserve’s holdings are visible to lawmakers and residents. The RFP describes specific operational and reporting capabilities the state requires of any vendor selected to serve as custodian and liquidity provider.
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