BitGo appoints ex-Silvergate president to oversee reward-bearing stablecoin

BitGo has appointed Ben Reynolds, former president of Silvergate Bank, as managing director to lead its stablecoin USD Standard.

Global crypto custodian firm BitGo announced Reynolds’ appointment to oversee the growth and global adoption of its recently launched USD Standard stablecoin.

In a Friday press release on Nov. 1, the Palo Alto-headquartered firm said Reynolds brings over 25 years of experience in fintech and banking, most recently serving as president of Silvergate Bank, a bank that faced severe financial difficulties in early 2023 following the collapse of FTX in November 2022.

In his new role, Reynolds will drive the expansion of USD Standard. BitGo added that Reynolds’ “deep understanding of stablecoins will be a significant asset to us.”

BitGo bets big on stablecoins

BitGo unveiled its stablecoin, USD Standard, in mid-September, featuring rewards for institutions that provide liquidity to the ecosystem. Key attributes of USD Standard include a 1:1 U.S. dollar backing through short-duration Treasury bills, overnight repos, cash, and real-time proof-of-reserves for transparency.

The move came as BitGo, which holds a dominant 96.6% market share in the Wrapped Bitcoin market with its wBTC token, faces increasing competition from new entrants like Coinbase and Kraken.

Reynolds expressed enthusiasm for the opportunity, emphasizing BitGo’s commitment to security and operational excellence. “With USD Standard, we have the chance to redefine what a stablecoin can be. This is about creating a more accessible and resilient financial system for everyone,” he stated.