**BitGo Appoints Former Silvergate President to Lead Stablecoin Initiative**
BitGo, a prominent global cryptocurrency custodian, has announced the appointment of Ben Reynolds as managing director, effective November 1. Reynolds, who previously served as president of Silvergate Bank, will spearhead the development and growth of BitGo’s USD Standard stablecoin.
With over 25 years of experience in the fintech and banking sectors, Reynolds aims to enhance BitGo’s stablecoin footprint on a global scale.
**Ben Reynolds to Drive Expansion of BitGo’s USD Standard Stablecoin**
Following his experience at Silvergate, where he navigated the bank through considerable financial turbulence post-FTX collapse in 2022, Reynolds is poised to accelerate the worldwide adoption of BitGo’s stablecoin. During his tenure at Silvergate, he played an instrumental role in transforming the bank into a publicly traded entity. He was also pivotal in launching the Silvergate Exchange Network (SEN), a real-time payment platform that significantly enhanced transaction efficiency within the web3 ecosystem, processing over $2 trillion in payments.
However, Silvergate Bank faced severe challenges, resulting in its liquidation and closure last year. In July, the SEC filed a lawsuit against the bank for allegedly making misleading statements regarding its anti-money laundering practices. A representative from BitGo clarified that while Reynolds was president for only five months and was involved in the creation of the SEN, he did not participate in the settlement processes, which were suspended earlier last year.
Reynolds is a licensed CPA and has extensive experience with HSBC and KPMG. He holds a Bachelor of Science in Accounting from San Diego State University and an MBA from Pepperdine University.
**BitGo Strengthens Its Position: Can Reynolds Elevate USD Standard in the Stablecoin Market?**
Launched in September, BitGo’s USD Standard is pegged at a 1:1 ratio to the U.S. dollar and is supported by highly liquid assets, including short-duration Treasury bills, overnight repurchase agreements, and cash. BitGo has implemented real-time proof-of-reserves to provide transparency and is targeting institutional clients with incentives to enhance liquidity within its ecosystem.
BitGo’s push into the stablecoin market comes on the heels of its success with Wrapped Bitcoin (wBTC), which currently holds a commanding 96.6% market share. On August 9, BitGo announced plans to diversify its custodial jurisdictions for wBTC to regions like 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 recommend a pause on the offboarding of wBTC collateral. Their new proposal, reflecting BitGo’s commitments, is set to be voted on October 3.