Texas will move its strategic bitcoin reserve out of BlackRock's IBIT ETF and into direct on-chain custody. The state issued a formal request for proposals on May 7 to recruit an institutional custodian capable of executing this changeover in 60 days.
In brief
- $10 million in IBIT to be converted into BTC held directly by the State of Texas
- A four-member advisory committee appointed to oversee management of the reserve
- The door remains open to other “eligible” cryptos beyond bitcoin
Texas takes direct control of its bitcoin reserve, far from ETFs
Since the creation of the strategic reserve, Texas has managed its bitcoin exposure through BlackRock's IBIT ETF. It was a quick solution to implement. However, it deprives the State of real ownership of the assets: holding ETF shares means holding a claim on bitcoin, not bitcoin.
THE tender documentpublished on the txsmartbuy.gov portal, sets a deadline of 60 days after signing the contract to finalize the transfer. The selected service provider must ensure secure custody, liquidity services for purchases and sales, and produce standardized reports as well as a public site displaying the reserve's assets and their valuation in real time.
This move to direct custody places Texas in a similar dynamic as other states seeking to materialize their exposure to digital assets rather than going through intermediaries.
A committee to manage, a call for tenders to execute
Alongside the call for tenders, interim controller Kelly Hancock revealed the four members of the advisory committee responsible for overseeing the reserve. The panel features experienced institutional investment executive Laurie Dotter, Jamie McAvity, founder of Cormint Data Systems, Carla Reyes, law professor specializing in digital assets at Southern Methodist University, and Gary Vecchiarelli, president and CFO of CleanSpark.
This panel will therefore advise the State on conservation methods and risk management. It will also oversee transparency obligations to lawmakers and the public.
Notable fact: the call for tenders opens the reserve to other “eligible” cryptos, without specifying which ones. Supporters of the founding law had also presented bitcoin, and potentially other high-capitalization assets, as hedging tools against inflation.
This movement of Texas goes beyond a simple change of provider. The State is moving from passive exposure via a traditional financial product to sovereign holding on blockchain.
In short, a dedicated public site, an independent governance committee, a contractual execution deadline: the infrastructure is structured methodically. If the reserve opens up to other digital assets, this Texan model could become a reference for states which are still hesitating between ETFs and direct adoption of bitcoin.
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