It might seem somewhat odd that the State, which does not possess any digital assets at the moment, is looking for a crypto vendor
The Government, in the announcement, has asked potential crypto vendors to submit a proposal to the responsible authority of the State. The Tennessee Department of Treasury here would have the authority to see the proposals and how these entities would manage state cryptocurrencies if there will be any in the future. As far as the holding of cryptocurrencies by the State is concerned, at the moment, it does not account for any cryptocurrencies or digital assets holdings, although it wants to get prepared for such things.
Under the unclaimed property program of Tennessee, he has got his latest request titled the ‘Request for Proposals for servicing and safekeeping the unclaimed securities and virtual currencies. These requests were from the vendors to get prepared for an upcoming event where unclaimed virtual currency is revoked for the State’s unclaimed property program.
The program is a government initiative to gather the owners with their assets as there is currency more than $1.2 billion worth of these unclaimed assets. It would follow the same approach for the digital assets or cryptocurrencies where the State holds the cash directly while the trader firm holds the securities on behalf of the Government.
In the proposal, the applicants or the vendors willing to apply are expected to avail their price structure for their capabilities of trading volume that they are able to handle. This structure is based on the trading volume of about $500,000 or about 50 bitcoin transfers across the exchanges.
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Such approaches could be seen as the Government’s attempts to bring the crypto under its authority and control, if at any time it would receive any unclaimed crypto assets. Although there are several other conditions that the applicant needs to meet that includes providing a description that would be detailed about the experience of Respondent in direct dealing with Unclaimed virtual currencies and securities or a common understanding of how these unclaimed virtual currency and securities are united to the custodian services and how the applicant or the respondent will be able to cater those services.
The vendor also needs to provide a detailed explanation about the technology that they plan to use and their processes. The last date for the submission of the proposal is Thursday, with the government authorities planning to announce the selected successful applicant by 10th May.
Source: https://www.thecoinrepublic.com/2022/04/24/why-is-the-state-of-tennessee-looking-out-for-a-cryptocurrency-chandler/