Why Is Tennessee Looking for a Crypto Custody Service Provider?

Bitcoin medals, in Washington, on June 17, 2014. (Karen Bleier/AFP via Getty Images)

The Tennessee Department of Treasury is seeking vendors who can manage cryptocurrency on their behalf.

In a request for proposals (RFP) letter, the department said that Tennessee doesn’t possess cryptocurrencies at present, but is working to safely hold digital assets in the near future.

The department will first ensure the crypto custody service provider can provide services with 100 percent safety.

The reason for the RFP is to “be prepared in the event that unclaimed virtual currency is remitted to the state’s unclaimed property program.” The program has over $1.2 billion in assets and works to reunite owners with their funds.

Also Read: Mayor Wants His City To Accept Bitcoin For Property Tax Payments

The treasury department has mentioned that prospective suppliers are requested to provide a price structure based on the company’s capacity to handle monthly cryptocurrency trading volumes of $500,000 and 50 Bitcoin transfers or withdrawals from an exchange account each month.  The department adds that the cryptocurrencies would include, but would not be limited to, Bitcoin.

Companies will also be required to provide information about the different technologies used and the process by which they provide services.

Earlier in February, A bill was introduced by State Rep. Jason Powell (D-Nashville) that would allow Tennessee and counties and municipalities in the state to invest in cryptocurrencies and NFTs.

By Bibhu Pattnaik

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