Deutsche Boerse to Launch Bitcoin, Ether Institutional Custody
Deutsche Boerse will launch crypto custody and settlement services for institutional clients in 2025, expanding its BTC and ETH solutions.
Key Takeaways:
Progress Through Legislature: Utah’s Bitcoin Reserve Bill (HB230) has passed the revenue and taxation subcommittee and is now moving to its second and third Senate readings before a final vote.
Strategic Investment in Digital Assets: The bill would allow the state treasurer to invest up to 5% of public funds in qualifying digital assets, primarily Bitcoin, positioning Utah as a leader in state-level cryptocurrency adoption.
Security and Regulation Measures: The legislation includes strict guidelines for investment eligibility and mandates secure storage of cryptographic keys, ensuring financial innovation is balanced with fiscal responsibility.
Utah is making significant strides toward integrating digital assets into its state financial framework.
Overview
Utah’s revenue and taxation subcommittee approved the “Blockchain and Digital Innovation Amendments” bill, also known as House Bill 230 (HB 230), with a 4-2-1 vote on February 20 2025. It will proceed to a second and third reading before the Senate holds a final vote. This legislative move positions Utah as a potential leader in the United States in adopting Bitcoin (BTC) as part of its strategic reserves.
Legislative Progress of HB230
Introduced by State Representative Jordan Teuscher on January 21 2025, HB230 aims to authorise the state treasurer to allocate up to 5% of public funds into “qualifying digital assets.” These assets are defined as cryptocurrencies with an average market capitalisation exceeding $500 billion over the preceding 12 months or approved stablecoins. BTC, with a market cap of approximately $1.9 trillion, is the primary asset meeting this criterion.
The bill swiftly progressed through the legislative process, passing the House with a 38-34 vote on February 6 2025. It was then transmitted to the Senate, where it underwent its first reading on February 7 2025. Subsequently, on February 18 2025, the bill was referred to the Senate Revenue and Taxation Committee for further deliberation.
Key Provisions and Implications
HB 230 outlines specific guidelines for the state’s investment in digital assets:
- Investment Cap: The state treasurer can invest up to 5% of public funds from designated accounts, including the Disaster Recovery Fund and Budget Reserves, into qualifying digital assets.
- Asset Criteria: Eligible investments are limited to digital assets with a market capitalisation exceeding $500 billion over the past year or US-backed stablecoins collateralised by dollars or other high-quality assets.
- Custody Requirements: The bill mandates that cryptographic keys be stored in encrypted environments across two geographically diverse and secure data centres to ensure security.
If enacted, the legislation will take effect on May 7 2025. This move reflects Utah’s commitment to embracing financial innovation while ensuring fiscal responsibility. Representative Teuscher stated, “This bill reflects our commitment to embracing cutting-edge technology and preparing for the future of finance while ensuring fiscal sovereignty.”
Broader Context and Future Outlook
Utah’s initiative is part of a broader trend of US states exploring the integration of digital assets into their financial systems. Over a dozen states, including Texas, Pennsylvania, Ohio, and Oklahoma, are introducing similar legislation. There is a growing recognition of BTC’s potential as a hedge against inflation and market volatility.
The advancement of HB 230 signifies Utah’s proactive approach to financial innovation. As the bill moves closer to becoming law, it could serve as a model for other states considering similar measures. The upcoming Senate deliberations will be pivotal in determining the future of digital asset integration within Utah’s public funds management.
Utah’s legislative efforts with HB 230 underscore a significant shift toward accepting and integrating digital assets in state-level financial strategies, potentially setting a precedent for others.