Texas Plans $10M Bitcoin Reserve Shift From IBIT to Direct Custody

Highlights:

• Texas Strategic Bitcoin Reserve targets direct Bitcoin custody after using IBIT as interim exposure.
• The RFP seeks custody, liquidity, reporting, and secure storage services for state-held crypto assets.
• A new advisory committee will guide reserve controls, valuation rules, and public reporting.

Texas officials have opened a vendor search to move the Strategic Bitcoin Reserve from ETF exposure into directly held Bitcoin. The Texas Comptroller of Public Accounts posted the request for proposals on May 7. It seeks a custody and liquidity provider for the state’s $10 million Bitcoin plan. Currently, Texas holds Bitcoin exposure through BlackRock’s iShares Bitcoin Trust, known as IBIT.

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The ETF structure gave Texas a temporary route into Bitcoin while officials prepared custody systems. The state now wants a provider that can buy, hold, manage, and report digital assets. The selected firm must also store Bitcoin in the name of the State of Texas. Moreover, the contract will cover liquidity services.

Strategic Bitcoin Reserve Plan Adds Direct Custody Rules

The RFP outlines a move from IBIT shares into spot Bitcoin after contract approval. Texas wants the provider to support that transition within 60 days of execution. Therefore, the state aims to replace ETF exposure with direct ownership under a third-party custody structure.

The procurement document also sets institutional custody standards for the reserve. It calls for secure key management, operational controls, reporting tools, and asset protection systems. Moreover, the provider must support valuation and account reporting for state records. The reserve may later include other qualifying cryptocurrencies, although Bitcoin remains the central asset.

JUST IN: 🇺🇸 Texas announces the creation of the "Texas Strategic Bitcoin Reserve Advisory Committee."

Texas is now also looking for a qualified firm to custody their BTC for when they buy more 🚀 pic.twitter.com/fbkps1IS6T

— Bitcoin Magazine (@BitcoinMagazine) May 29, 2026

Texas created the reserve under Senate Bill 21, which Governor Greg Abbott signed in June last year. The state used IBIT as an interim holding after allocating public funds to the program. In November, Texas bought $5 million in IBIT shares as part of the plan. Officials also planned another $5 million allocation toward directly held Bitcoin.

Advisory Panel Sets Rules For Custody And Reporting

Acting Texas Comptroller Kelly Hancock has named four advisory members for the reserve. The group includes Laurie Dotter, Jamie McAvity, Carla Reyes, and Gary Vecchiarelli. Their experience covers investment management, Bitcoin mining, digital asset law, and finance. Hancock said the reserve needs transparency, security, and strong financial controls.

The advisory committee will guide custody standards, risk controls, valuation rules, and digital asset operations. Also, it will advise on public reporting as Texas builds the reserve’s management structure. The Comptroller’s office said the selected firm must create a public website. That site will show reserve holdings, market values, and educational materials.

Texas Places Bitcoin Strategy Inside Public Finance

The reserve will operate through the Texas Treasury Safekeeping Trust Company. This structure keeps the program separate from the state’s general treasury. Meanwhile, the Comptroller will hold custodial authority and contract secure services for the Bitcoin holdings. The model mirrors Texas’ broader approach to safeguarding state-owned assets.

Texas already operates the Texas Bullion Depository in Austin for gold and silver storage. The Bitcoin program now extends that reserve framework into digital assets. Direct custody, however, provides other forms of control, particularly with regard to private keys and operational risks. Security, reporting, and liquidity are thus key priorities of the RFP.

The move also places Texas among the leading U.S. states using public funds for Bitcoin exposure. Other states have discussed similar reserve plans, but Texas has already moved capital into the market. U.S. lawmakers recently introduced a bipartisan Bitcoin reserve bill.

The proposal would place a Strategic Bitcoin Reserve under the Treasury and require a 20-year holding rule for government-held BTC. The proposal follows a White House executive order signed in March last year, which created a policy for a Strategic Bitcoin Reserve and a separate digital asset stockpile.

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