In a historic move, the state of Texas has passed legislation to allocate $10 million from its budget to purchase and hold Bitcoin as part of a state-controlled reserve.
Signed into law by Governor Greg Abbott, the bill establishes the Texas Bullion Depository Reserve Fund, which will hold both precious metals and Bitcoin, positioning the Lone Star State as the first U.S. state to officially custody BTC.
According to the bill, the state will prioritize financial sovereignty and prepare for potential future instability in fiat currencies by holding non-correlated assets. The Texas Comptroller will be responsible for executing the purchases and maintaining the reserve, with transparency ensured through annual public audits.
“This is about safeguarding Texas wealth and creating a hedge against federal mismanagement,” said State Representative Mark Dorazio, one of the bill’s sponsors.
This move mirrors the federal U.S. government’s own silent strategy of maintaining a large Bitcoin reserve (~200k BTC) and echoes the actions of countries like El Salvador and Bhutan that are leveraging BTC at a national level.
Why It Matters:
First state-level Bitcoin treasury in the U.S.
Adds legitimacy to BTC as a sovereign reserve asset
Could inspire a wave of similar moves by other states or municipalities
Adds fuel to the Bitcoin-as-digital-gold narrative