State of Tennessee prepares to hold cryptocurrencies

The state of Tennessee is looking for a contractor to hold cryptocurrencies on its behalf.

A request for proposals with a Thursday deadline asks potential vendors to tell the Tennessee Department of Treasury how the company would manage for the state virtual currencies like Bitcoin. Currently, the state holds no cryptocurrencies, according to the RFP, and is seeking a vendor in order to “be prepared in the event that unclaimed virtual currency is remitted to the state’s unclaimed property program.”

A Department of Treasury spokesperson declined to elaborate or make any state official available for comment.

The unclaimed property program holds more than $1 billion in assets and seeks to reunite owners with the funds. The state directly holds unclaimed cash but uses a vendor to hold securities. The new vendor would also hold unclaimed cryptocurrencies.

The state tentatively plans to announce the winning applicant on May 10.

In the RFP, potential vendors are asked to offer a pricing framework based on the company’s ability to manage monthly trading volumes of $500,000 in virtual currency and 50 transfers or withdrawals of Bitcoin from an exchange account each month. The RFP notes that cryptocurrencies would include, but not be limited to, Bitcoin.