Texas is moving forward with plans to hold Bitcoin directly, taking the next operational step in managing its $10 million Strategic Bitcoin Reserve.
Key Takeaways
- Texas plans to move its $10 million Bitcoin reserve exposure from BlackRock’s IBIT ETF into directly held Bitcoin.
- The state has launched a search for a custody and liquidity provider to support the transition.
- A newly formed Strategic Bitcoin Reserve Advisory Committee will help guide custody, risk management, and disclosure practices.
- The transition to direct Bitcoin holdings is expected within 60 days of contract execution.
What Happened?
Texas has begun the process of transitioning its $10 million Strategic Bitcoin Reserve from exposure through the BlackRock iShares Bitcoin Trust (IBIT) to directly held Bitcoin. To support the move, the Texas Comptroller’s Office has issued a request for proposals seeking a qualified firm to provide custody and liquidity services for the reserve.
At the same time, state officials announced the formation of a Strategic Bitcoin Reserve Advisory Committee that will help oversee key aspects of reserve management, including custody arrangements, risk controls, and public reporting.
BREAKING: Texas is reportedly moving its Bitcoin reserve strategy away from ETF exposure and toward direct custody of BTC holdings. The state plans to convert its existing IBIT position into directly held Bitcoin through a third-party custodian.
— EyeWhales (@EyeWhales) May 29, 2026
Texas Moves Beyond ETF Exposure
The state currently holds approximately $10 million in Bitcoin exposure through IBIT, which served as an interim solution while Texas prepared the infrastructure necessary for direct ownership and custody of digital assets.
Under the newly issued request for proposals, the selected provider will be responsible for acquiring, safeguarding, managing, and reporting on Bitcoin holdings owned by the State of Texas. The provider will also support liquidity needs, allowing the reserve to buy or sell Bitcoin when required.
According to the procurement documents, Texas intends to complete the transition from ETF based exposure to direct Bitcoin ownership within 60 days of signing the contract with the selected firm.
This shift represents an important change in how the reserve will be managed. While IBIT provides exposure to Bitcoin’s market price, direct custody gives the state ownership of the underlying asset through a dedicated custody structure designed specifically for government holdings.
Custody Provider Will Handle Security and Reporting
The request for proposals outlines several requirements for firms seeking the contract. Texas is looking for a provider capable of delivering institutional grade custody services, including secure asset storage, key management systems, operational controls, and comprehensive reporting tools.
The state also requires that reserve assets be held securely in the name of the State of Texas.
In addition to custody functions, the selected provider will be expected to assist with transparency initiatives. The Comptroller’s Office said the firm must help develop a public facing website that displays reserve holdings, asset values, and educational information related to the reserve.
The reserve framework may eventually support other qualifying digital assets, although Bitcoin remains the primary asset identified within the current structure.
Advisory Committee Formed to Guide Reserve Management
Alongside the custody search, the Texas Comptroller’s Office announced the formation of the Strategic Bitcoin Reserve Advisory Committee.
News Release: Acting Texas Comptroller Kelly Hancock Names Strategic Bitcoin Reserve Advisory Committee Members https://t.co/KrBunYJNsc pic.twitter.com/lwjM3ReC6G
— Texas Comptroller (@txcomptroller) May 28, 2026
The committee brings together experts from investment management, digital asset law, Bitcoin mining, corporate finance, and public company governance.
Members include:
- Laurie Dotter, an experienced investment executive.
- Jamie McAvity, founder of Cormint Data Systems.
- Carla Reyes, law professor at Southern Methodist University.
- Gary Vecchiarelli, President and CFO of CleanSpark.
The committee will provide recommendations on reserve custody arrangements, risk management policies, valuation practices, disclosure standards, and broader digital asset management strategies.
Acting Texas Comptroller Kelly Hancock said the reserve should operate with transparency, security, and strong financial controls, highlighting the state’s focus on responsible management as it expands its involvement with Bitcoin.
Texas Continues Expanding Its Bitcoin Strategy
The latest move marks an operational milestone rather than a legislative one. Earlier efforts focused on establishing the framework for a state level Bitcoin reserve. The current phase centers on building the infrastructure needed to manage those assets directly.
By moving beyond ETF exposure and into direct ownership, Texas is positioning itself among the most active U.S. states exploring Bitcoin as a reserve asset. The transition also reflects a broader national conversation around strategic Bitcoin reserves and the role digital assets could play in public sector finance.
Vendors have until June 15 to submit proposals. Following the review process, Texas is expected to select a provider capable of supporting secure custody, liquidity management, public reporting, and the transfer of reserve assets into direct Bitcoin holdings.
CoinLaw’s Takeaway
In my experience, the most important part of this story is not the size of the reserve but the shift from ETF exposure to actual Bitcoin ownership. Many institutions begin with ETFs because they are easier to access, but direct custody signals a deeper commitment to the asset itself.
I found Texas’ approach notable because the state is focusing not only on acquiring Bitcoin but also on building governance, transparency, and risk management structures around it. If successful, this framework could become a model for other states considering similar Bitcoin reserve strategies.
