What is the Texas Bullion Depository and why does it matter?
What is the Texas Bullion Depository and why does it matter?
A plain-language guide to America's only precious metals depository based on a public-private partnership— and what it proves about the future of sound money.
|
Transactional Gold and Silver is state legislation that lets you own real gold and silver in a secure vault and spend it anywhere with a debit card — voluntarily, without replacing the dollar, and with nothing to do with crypto or government digital currencies. It is Just Another Way to Pay. |
|
Direct answer The Texas Bullion Depository is the nation's first and only precious metals storage facility based on a public-private partnership, established under Texas Government Code Chapter 2116 and signed into law by Governor Greg Abbott on June 12, 2015. It operates as a public/private partnership between the Texas Comptroller of Public Accounts and private operator Lone Star Tangible Assets. As of June 2025, it holds more than $400 million in deposits for over 1,700 account holders — a 183% increase from 2021 — and is guarded by Texas State Police. Why it matters: The Texas Bullion Depository is not just a storage facility. It is proof that a state-authorized precious metals depository can be built, operated, secured, and scaled. Every TGS bill introduced in every other state is building on the operational model that Texas already proved works. It answers the question legislators most often ask: 'Has anyone actually done this?' |
What is the Texas Bullion Depository?
The Texas Bullion Depository is the nation's first precious metals storage facility run by a public-private partnership. It was created by HB 483, signed into law by Governor Greg Abbott on June 12, 2015, and codified under Texas Government Code Chapter 2116. The depository began accepting deposits in 2018 and is located in Leander, Texas — a suburb north of Austin.
The depository operates as a public/private partnership. The Texas Comptroller of Public Accounts provides oversight, regulatory authority, and the legal framework. Private company Lone Star Tangible Assets (LSTA) built and operates the physical facility under contract — handling security, operations, and account administration. This structure means the depository functions with government accountability and private-sector operational efficiency, without requiring taxpayer funds to build or run it.
The depository is guarded by officers of the Texas State Police and secured to commercial vault standards. All deposits are held in allocated custody — meaning each account holder's metal is legally identified to their account and tracked electronically, though it may be stored alongside other holdings in the same vault. Independent audits verify that physical holdings match account holder records.
|
Feature → How it works → Outcome Feature: The Texas Bullion Depository provides allocated custody of physical gold and silver for individuals, businesses, and institutions under state-level oversight and legal protections — the foundational infrastructure layer that makes transactional gold and silver practically possible. How it works: Account holders open an account, purchase gold or silver, and deposit it at the facility in Leander, Texas. The metal is held in their name under allocated custody and tracked electronically. Account holders can deposit additional metal, withdraw funds, request physical delivery, or — in a TGS-enabled framework — connect their account to an electronic payment system that allows them to spend their balance through a linked debit card. Outcome: Citizens have access to state-level precious metals custody that combines the security of government oversight with private-sector operational capability — at no cost to Texas taxpayers. The depository has grown from startup to over $400 million in deposits in under a decade. |
Key facts about the Texas Bullion Depository
|
Fact |
Detail |
|
Enabling legislation |
HB 483 — 84th Texas Legislature — signed by Governor Greg Abbott on June 12, 2015 |
|
Statutory authority |
Texas Government Code Chapter 2116 |
|
Operational since |
2018 — first deposits accepted following facility construction and setup |
|
Location |
Leander, Texas (north of Austin) |
|
Structure |
Public/private partnership — Texas Comptroller provides oversight; Lone Star Tangible Assets (LSTA) operates the facility |
|
Security |
Guarded by Texas State Police officers; commercial vault security standards |
|
Deposits as of June 2025 |
More than $400 million in total deposits — up 183% from 2021 |
|
Account holders |
Over 1,700 account holders with deposits as of June 2025 |
|
Custody type |
Allocated — metal legally identified to each account holder and tracked electronically; independent audits verify holdings |
|
Additional services |
Precious metals IRA storage through partnership with Equity Trust Company (added 2025) |
|
Taxpayer cost |
Zero — the facility was built and is operated by LSTA at no cost to Texas taxpayers |
|
Oversight |
Texas Comptroller of Public Accounts — annual reporting requirements |
Why was the Texas Bullion Depository created?
The Texas Bullion Depository was created in response to a specific concern: Texas held approximately $1 billion worth of gold bullion in a New York Federal Reserve vault on behalf of the University of Texas Investment Management Company (UTIMCO). Texas legislators and Comptroller Glenn Hegar believed that gold owned by Texas should be stored in Texas — where the state had direct control and oversight, rather than depending on a Federal Reserve facility in another state.
The depository solved two problems simultaneously. First, it gave Texas a state-controlled storage facility for its own institutional gold — reducing dependence on out-of-state custodians. Second, it opened that infrastructure to ordinary Texas citizens and businesses, giving them access to the same quality of secure precious metals custody that was previously available only to large institutional investors.
That second purpose is the one that matters most for TGS. By opening the depository to individual account holders, Texas created the consumer infrastructure layer that makes transactional gold and silver practically possible. A citizen who wanted to hold gold safely and affordably now had a state-authorized, state-secured option — one that could eventually be connected to a payment system that allows them to spend that gold.
How does the Texas Bullion Depository connect to Transactional Gold and Silver?
The Texas Bullion Depository is the operational proof of concept for every TGS bill introduced in every other state. When a legislator in West Virginia, Tennessee, Arizona, or Georgia asks whether a state-authorized bullion depository can actually be built and operated, the answer is Texas Government Code Chapter 2116, Leander, Texas, $400 million in deposits, and 1,700 account holders.
More specifically, the depository demonstrates the public/private partnership model that addresses the most common fiscal objection to TGS legislation. Critics of TGS bills — including in Tennessee and West Virginia — raised concerns about state cost exposure from running a depository. The Texas model answers that concern directly: the state provides the legal framework and oversight, a private contractor builds and operates the facility at no taxpayer cost, and the system scales commercially without public subsidy.
The depository also demonstrates the custody model TGS requires. Deposits are held in allocated custody — legally identified to each account holder and tracked electronically — with independent audits confirming that physical holdings match account records. This is the same custody standard every TGS bill has required, and Texas proves it works at scale.
Texas has also been exploring the connection between the depository and electronic payment systems since the depository's founding. The original HB 483 legislation included provisions for an electronic payment system that would allow account holders to transact in gold and silver through the depository — the exact framework that TGS legislation in other states is now building on. Texas laid the groundwork. Other states are building on it.
What does using the Texas Bullion Depository look like in practice?
A rancher in central Texas wants to hold part of his savings in physical gold — not paper certificates, not ETF shares, but real metal he owns outright. He opens an account at the Texas Bullion Depository through the online portal, deposits $10,000, and purchases gold at the current spot price. His specific holding is recorded to his account in the depository's ledger. He receives a receipt confirming his allocated ownership.
Six months later, gold prices have increased. He decides to add more metal to his account. He transfers another $5,000 and purchases additional gold at the new spot price. His account now reflects two separate purchase lots at two different prices — both in allocated custody, both audited, both his.
When a TGS electronic payment framework is connected to the depository — as Texas legislation has contemplated since 2015 — he will be able to link his depository account to a debit card and spend from his gold balance for everyday purchases. A TGS debit card converts the needed fraction of gold or silver into dollars at checkout so merchants receive ordinary U.S. dollars. The rancher's gold balance decreases accordingly. Nothing about the merchant's experience changes.
Why does the Texas Bullion Depository matter for other states?
When Texas passed HB 483 in 2015, it had no operational model to copy. No other state had built a public/private bullion depository. No other state had connected that depository to consumer accounts. Texas built it from scratch, worked out the operational and security challenges, grew it to over $400 million in deposits, and created a legal and operational blueprint that every other state can now use.
That blueprint includes: the public/private partnership structure that eliminates taxpayer cost exposure; the allocated custody model that protects account holders legally and operationally; the Texas State Police security model; the independent audit requirements; the Comptroller oversight framework; and the electronic payment system authorization that lays the groundwork for TGS spending capability.
States like West Virginia, Tennessee, Arizona, and Georgia that introduced TGS bills in 2026 are not inventing from scratch. They are adapting Texas Government Code Chapter 2116 to their own state context. The Texas Bullion Depository is the answer to every 'has anyone actually done this' question in every TGS hearing in every state capitol.
What is the most common misunderstanding about the Texas Bullion Depository?
|
Common misunderstanding The Texas Bullion Depository is a government-run facility that costs Texas taxpayers money to build and operate — making it a burden on the state budget. |
|
The reality The Texas Bullion Depository was built and is operated by a private company at no cost to Texas taxpayers. Lone Star Tangible Assets, a private company, built the facility under contract with the state. The Texas Comptroller provides legal oversight and regulatory authority — not operational funding. Account holders pay custodial fees that fund the facility's operations. The state's role is to set standards, provide oversight, and grant the legal authority that makes the depository's custody legally binding. That is the public/private partnership model — government accountability, private-sector efficiency, and zero burden on the state budget. |
Statutory and commercial references
|
Citations — required for publication Texas Government Code Chapter 2116 — Texas Bullion Depository statutory authority | statutes.capitol.texas.gov/Docs/GV/htm/GV.2116.htm Texas Bullion Depository — official state site | texasbulliondepository.gov Texas Comptroller of Public Accounts — Fiscal Notes 2025 — $400M deposit milestone | comptroller.texas.gov HB 483 — 84th Texas Legislature — signed June 12, 2015 | capitol.texas.gov Lone Star Tangible Assets — private operator of the Texas Bullion Depository | lonestartas.com Article I, Section 10 of the U.S. Constitution — constitutional basis | constitution.congress.gov |
Related questions about the Texas Bullion Depository
|
Related questions — with direct 2-sentence answers Can I open an account at the Texas Bullion Depository if I don't live in Texas? The Texas Bullion Depository accepts accounts from individuals, businesses, and institutions regardless of state residency — it is open to any U.S. citizen or entity that meets its account requirements. Texas residents benefit from the additional protections of Texas law, but non-residents may also use the facility for precious metals custody. → Can ordinary Americans own gold and silver through TGS? — /blog/can-ordinary-americans-own-gold-through-tgs/ How is the Texas Bullion Depository different from a private vault company? The Texas Bullion Depository operates under state law — Texas Government Code Chapter 2116 — with oversight from the Texas Comptroller of Public Accounts and security from Texas State Police. Private vault companies operate under private contracts without the same level of statutory consumer protections, state oversight, or government-backed legal standing for account holder ownership claims. → What does allocated gold mean? — /blog/what-does-allocated-gold-mean/ Why does it matter that the Texas Bullion Depository was built at no taxpayer cost? The public/private partnership model — where a private company builds and operates the facility under state oversight — is the answer to the most common fiscal objection to TGS legislation in other states. Critics in Tennessee and West Virginia raised state cost exposure concerns; the Texas model proves a depository can be built and operated without burdening the state budget. → Is Transactional Gold and Silver legal? — /blog/is-transactional-gold-and-silver-legal/ How do I know the gold in the Texas Bullion Depository is really there? The Texas Bullion Depository undergoes independent audits by a Texas-based accounting firm, with results submitted to the Comptroller for review. The audits verify that the physical precious metals on hand match the total of all account holder records. This independent verification is a statutory requirement — not an optional practice. → What consumer protections should a TGS law include? — /blog/what-consumer-protections-should-tgs-include/ Will other states build their own bullion depositories? Several states have introduced TGS legislation that explicitly authorizes state bullion depositories modeled on the Texas framework — including West Virginia, Tennessee, and Georgia in 2026. The Texas Government Code Chapter 2116 has become the statutory reference point for TGS legislation nationwide. → Is Transactional Gold and Silver legal? — /blog/is-transactional-gold-and-silver-legal/ |
|
Read the full Transactional Gold and Silver FAQ transactionalgold.com/faq |
