Texas is moving its Strategic Bitcoin Reserve off the shelf and into a vault. The state issued a Request for Proposal on May 7 seeking a custodian and liquidity provider to transition its Bitcoin holdings from BlackRock’s iShares Bitcoin Trust ETF into directly held coins.

The procurement document, announced by the Texas Comptroller’s office, signals that the state wants to actually own Bitcoin rather than hold a financial product that tracks it.

From ETF wrapper to on-chain ownership

Texas allocated $10 million for its Strategic Bitcoin Reserve through Senate Bill 21, which Governor Greg Abbott signed on June 20, 2025. The state made its first move on November 20, 2025, putting $5 million into BlackRock’s IBIT as a temporary placeholder while it figured out the direct custody plumbing.

That temporary arrangement is now getting replaced. The RFP, numbered 908-26-1778WS, has a deadline of June 15, 2026 for vendor proposals, with the transition expected to kick off around August 2026.

The reserve will operate under the Texas Treasury Safekeeping Trust Company, separate from the state’s general treasury. The comptroller holds custodial authority and is responsible for contracting the secure services needed to hold Bitcoin directly.

Advisory committee takes shape

On May 28, Comptroller Kelly Hancock announced a five-member Strategic Bitcoin Reserve Advisory Committee. The committee’s job is to oversee risk policies, valuation methodologies, and custody standards for the reserve.

The committee will also be required to produce biennial public reports.

The advisory structure mirrors how states typically handle precious metals reserves. Texas already operates the Texas Bullion Depository in Austin, where it stores gold and silver for both the state and private depositors. The Bitcoin reserve effectively extends that framework into digital assets.

Why direct custody matters

When Texas owns IBIT shares, BlackRock is the custodian. The state has exposure to Bitcoin’s price but depends entirely on BlackRock’s operational and counterparty framework.

Direct custody eliminates that intermediary layer. Texas would hold the private keys, either itself or through a dedicated third-party custodian it selects and contracts with directly.

What this means for investors

Texas is the first US state to allocate public funds specifically for a strategic Bitcoin reserve. That distinction matters because it creates a template. Other states have proposed similar legislation, but Texas moved first from proposal to actual capital deployment.

The biennial reporting requirement means any losses will be public and politically exploitable.

Investors should watch the custodian selection closely. That vendor announcement, expected sometime after the June 15 proposal deadline, could be more consequential for the institutional custody market than the reserve itself.