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Global cryptocurrency custodian BitGo has appointed Ben Reynolds, the former president of Silvergate Bank, as managing director effective November 1, tasked with spearheading the development and growth of its USD Standard stablecoin.
With more than 25 years of experience in fintech and banking, Reynolds will concentrate on enhancing BitGo’s stablecoin footprint on a global scale.
Ben Reynolds to Oversee Expansion of BitGo’s USD Standard Stablecoin
Reynolds is anticipated to boost the worldwide adoption of BitGo’s stablecoin following his time at Silvergate, a financial institution that faced considerable challenges after the FTX collapse in 2022.
During his tenure at Silvergate, Reynolds was instrumental in transforming the bank into a publicly traded entity. He was involved in the launch of the Silvergate Exchange Network (SEN), a real-time payment system that enhanced transaction efficiency in the web3 space. The SEN processed over $2 trillion in payments.
Nonetheless, Silvergate Bank encountered significant difficulties, leading to its liquidation and closure last year. In July, the SEC filed a lawsuit against the bank for allegedly providing misleading information regarding its anti-money laundering practices.
A spokesperson for BitGo indicated that Reynolds, who served as president for only five months, was responsible for building the SEN but did not participate in settlement activities. Silvergate suspended the SEN earlier last year.
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We’re thrilled to announce that Ben Reynolds has joined BitGo as Managing Director and Head of USD Standard. With over 25 years of experience in fintech, software, banking, and asset management, Ben joins us from Silvergate Bank, where he served as President.
Our goal is to… pic.twitter.com/9DQvYx0DdZ— BitGo (@BitGo) November 1, 2024
Reynolds, a licensed CPA, also brings experience from HSBC and KPMG, holding a B.S. in Accounting from San Diego State University and an MBA from Pepperdine University.
BitGo Strengthens Its Position: Can Reynolds Advance USD Standard Among Stablecoins?
Launched in September, BitGo’s USD Standard is pegged 1:1 to the U.S. dollar and is supported by highly liquid assets, including short-duration Treasury bills, overnight repos, and cash.
BitGo has implemented real-time proof-of-reserves to promote transparency, aiming to attract institutional participants with incentives for providing liquidity within the ecosystem.
The initiative for BitGo’s stablecoin follows its success with Wrapped Bitcoin (wBTC), which holds a 96.6% market share.
On August 9, BitGo announced plans to diversify its custodial jurisdictions for Wrapped Bitcoin (wBTC) to regions such as Singapore and Hong Kong, partnering with BiT Global and Tron CEO Justin Sun.
However, concerns regarding Sun’s involvement led risk management firm BA Labs to suggest pausing the offboarding of wBTC collateral. Their new proposal, referencing BitGo’s commitments, is set for a vote on October 3.
The post BitGo Hires Former Silvergate President to Head Stablecoin Business appeared first on Cryptonews.
