BitGo Appoints Former Silvergate President Ben Reynolds to Lead Expansion of USD Standard Stablecoin

BitGo Appoints Former Silvergate President Ben Reynolds to Lead Expansion of USD Standard Stablecoin

BitGo has appointed Ben Reynolds as managing director to oversee the development and expansion of its USD Standard stablecoin. Reynolds brings over 25 years of experience in the fintech and banking sectors to this new role, having served as president of Silvergate Bank prior to his appointment on November 1.

In his new position at BitGo, Reynolds will focus on increasing the global footprint of the company’s USD Standard stablecoin, which is designed to facilitate greater efficiency and adoption in the crypto market. His expertise in the financial industry is expected to accelerate the adoption of BitGo’s stablecoin following his tenure at Silvergate Bank, which faced significant financial difficulties after the collapse of FTX in 2022.

During his time at Silvergate, Reynolds played a crucial role in the bank's transformation into a public company and was instrumental in launching the Silvergate Exchange Network (SEN). The SEN, a real-time payment platform, significantly enhanced transaction efficiency within the web3 ecosystem and processed over $2 trillion in payments. However, Silvergate Bank faced substantial challenges leading to its liquidation last year. Additionally, in July, the SEC filed a lawsuit against the bank for allegedly making misleading statements regarding its anti-money laundering practices.

Despite these challenges, a BitGo spokesperson clarified that while Reynolds was president for only five months and helped establish the SEN, he was not involved in its settlement processes, as the network was suspended earlier in the year.

Reynolds is a licensed CPA and has held positions at HSBC and KPMG. He holds a Bachelor of Science in Accounting from San Diego State University and an MBA from Pepperdine University, further solidifying his credentials in the financial sector.

BitGo's USD Standard stablecoin was launched in September and is pegged 1:1 to the U.S. dollar. It is supported by highly liquid assets, including short-duration Treasury bills, cash, and overnight repos. To enhance transparency and build trust within the crypto community, BitGo has implemented real-time proof-of-reserves, targeting institutional players and providing incentives for liquidity within the ecosystem.

This move comes on the heels of BitGo's success with Wrapped Bitcoin (wBTC), which currently holds a commanding 96.6% market share. On August 9, BitGo announced plans to diversify the custodial jurisdictions for its Wrapped Bitcoin to include global financial hubs such as Singapore and Hong Kong, in partnership with BiT Global and Tron CEO Justin Sun. However, Reynolds' involvement raised concerns, prompting risk management firm BA Labs to suggest pausing the offboarding of wBTC collateral. A new proposal regarding this matter is set to be voted on October 3.