The State of Tennessee has urged contractors for proposals to help manage unclaimed cryptocurrency on its behalf. It is looking for prospective vendors to submit a proposal to the Tennessee Department of Treasury on how to manage any digital asset for the state. The state doesn’t hold any cryptocurrency but wants to be prepared for the same.
The latest request has been dubbed “Request for Proposals for safekeeping and servicing unclaimed securities and virtual currency.” It calls for vendors to be prepared in the event that unclaimed cryptocurrency is allotted to the state’s unclaimed property program.
This is the government’s initiative to reunite owners with their assets; currently, it has $1.2 billion worth of unclaimed assets. The state holds the cash directly, and the vendor holds the securities on its behalf. As such, the government is now seeking the same approach for cryptocurrencies. Program applicants will provide a price structure for the trading volume of $500,000 or 50 Bitcoin transfers across exchanges. This is the government’s attempt to bring crypto under its control if it receives unclaimed crypto assets.
The applicant has to meet other conditions as well. It includes providing a narrative that illustrates the Respondent’s experience in dealing directly with Unclaimed-Securities and virtual currency. The applicant has to have a fair understanding of how Unclaimed Securities and virtual currency are unique to the custody services and how the Respondent will be able to fulfill the services.
Under the program, the vendor must explain in detail the technology they plan to use and the processes as well. The deadline for the application is Thursday. The Tennessee state authorities plan to announce the successful applicant by May 10.