The world of cryptocurrencies is getting bigger by the day. Yet many large institutions are still very cautious about entering this market. The crypto market is very volatile and certainly noisy, and institutions with large wallets have a lot to lose. The US State of Tennessee plans to take the plunge.
Custodian for cryptocurrencies
That writes the Nashville Post† Nashville is the largest city in Tennessee. The US state is looking for a custodian who would like to hold cryptocurrencies in the name of the state treasury. The details can be found in a 64-page document that has now been deleted, but with the help of the Internet Archive it is to find back.
As far as we have been able to find, only Bitcoin (BTC) explicitly mentioned, but it clearly states that other cryptocurrencies may also be able to be held. It does not appear that there is a clear picture of which other cryptos are found interesting.
The trading volume that the custodian must be able to process must be at least 500,000 US dollars per month and 50 deposits and withdrawals from trading platforms must be possible each month. At the same time, all virtual currencies must be kept in an exchange account. It is not clear what percentage of the total portfolio of Tennessee’s treasury will go to cryptocurrencies. Nashville Post writes that the state fund manages a total of more than USD 1 billion.
No more exception
Currently, the state does not hold cryptocurrencies, but that will clearly change soon. It is not clear when this will be, so it may take a while. We also do not know which institutes are interested in this role.
Tennessee isn’t the only place in the United States to do this. So the mayor of Miami in Florida pleads regular for bitcoin and other cryptocurrencies. In Colorado you can now enjoy your pay taxes and banks in the state of Virginia have recently legally allowed to provide services around digital assets.
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