BitGo has appointed Ben Reynolds, the former president of Silvergate Bank, to oversee its USD Standard stablecoin initiative. The company’s objective is to increase global adoption and capitalize on Reynolds’ extensive fintech experience to drive growth.
BitGo, a global crypto custodian, appointed Ben Reynolds, the former president of Silvergate Bank, as managing director on November 1. His role will be to oversee the development and expansion of the USD Standard stablecoin.
Reynolds, who has accumulated more than 25 years of experience in finance and technology, will concentrate on expanding BitGo’s stablecoin presence on a global scale.
It is anticipated that Raynolds will expedite the global adoption of BitGo’s stablecoin following his tenure at Silvergate, a bank that was confronted with substantial financial challenges following the FTX collapse in 2022.
Reynolds was instrumental in the bank’s transition to a public corporation during his tenure at Silvergate. He was instrumental in the establishment of the Silvergate Exchange Network (SEN), a real-time payment platform that enhanced the efficacy of transactions in web3. The SEN processed payments totaling more than $2 trillion.
Nevertheless, Silvergate Bank encountered substantial obstacles. It ultimately liquidated and shuttered its doors last year. SEC filed a lawsuit against the bank in July for allegedly making fraudulent statements regarding its anti-money laundering procedures.
Reynolds, the company’s president for only five months, constructed the SEN, but he was not involved in the settlement procedure, according to a spokesperson for BitGo. Silvergate suspended the SEN in earlier last year.
Reynolds, who is a licensed CPA, has also worked at HSBC and KPMG. He possesses a B.S. in Accounting from San Diego State University and an MBA from Pepperdine University.
In September, BitGo introduced its USD Standard, which is 1:1 anchored to the U.S. currency and sustained by highly liquid assets including short-duration Treasury bills, overnight repos, and cash.
In order to guarantee transparency, BitGo has implemented real-time proof-of-reserves, which aim to incentivize institutional actors to contribute liquidity to the ecosystem.
BitGo’s stablecoin initiative is a continuation of its success with Wrapped Bitcoin (wBTC), which currently holds a 96.6% market share.
BitGo announced on August 9 that it would expand its Wrapped Bitcoin (wBTC) custodial jurisdictions to include locations such as Singapore and Hong Kong, in partnership with Justin Sun, the CEO of Tron and BiT Global.
Nevertheless, Sun’s involvement raised concerns, which led risk management firm BA Labs to suggest that the offboarding of wBTC collateral be suspended. On October 3, they will vote on their new proposition, which references BitGo’s commitments.
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