BitGo Names Former Silvergate President to Lead Stablecoin Efforts
Global crypto custodian BitGo has named former President at Silvergate Bank Ben Reynolds as Managing Director as it introduces its new stablecoin offering, the USD Standard. Announced in September, USD Standard is the ability for institutional liquidity providers to earn rewards and is the next generation of stablecoin transparency and value passed through to the user. With BitGo’s hiring of Reynolds, this underscores the company’s drive for solid and robust financial offerings.
Veteran Joins BitGo in Stablecoin Initiative
He served the now-defunct bank through unprecedented growth and considerable perils. Reynolds also brings more than 25 years of experience in banking and fintech to BitGo. The California-based company, once a significant player in crypto banking, saw financial turmoil earlier in 2023, much of which it blames on the late-2022 implosion of FTX. Reynolds’ tenure at Silvergate positions him well for BitGo’s push deeper into the unstable world of stablecoins, and BitGo is hoping his experience aids growth and adoption of USD Standard. “Ben’s deep understanding of stablecoins will be a big asset to us,” BitGo said in a statement.
USD Standard: a Stablecoin which is secure and accrues interest.
The USD Standard provides a blend of stability and, at the same time, transparency. Being backed 1:1 by U.S. dollars held in short-term Treasury securities and their cash equivalents, which are regularly audited for transparency, in addition, BitGo uses real-time proof-of-reserves to enhance trust in its ecosystem. This particular stablecoin’s unique value proposition comes in the form of rewarding institutions with liquidity provision. Such mechanisms help maintain stability in trading volumes and pricing as well, benefiting the wider crypto economy in the process.
Stablecoins in the Limelight
BitGo’s foray into stablecoins puts it in league with other heavy hitters such as Coinbase and Kraken. But the custodial firm – commanding more than 96.6% market share in Wrapped Bitcoin (wBTC) – will doubtless leverage its leading expertise in secure digital asset management into the stablecoin space. With USD Standard, BitGo says it wants to meet growing demand for stablecoins that offer security and real value for institutional users.
A New Vision of Stablecoin
Reynolds expressed his enthusiasm for joining and defining how a resilient, accessible stablecoin should be built. “With USD Standard, we have the opportunity to redefine what a stablecoin can be,” Reynolds said. “This is about creating a more accessible and resilient financial system for everyone.” The focused approach he takes to his work-excellence in operations and security-merits the missions that BitGo drives; leadership in this respect will drive the stablecoin to wider adoption.
