Silvergate Bank’s former president has joined BitGo, a major global crypto custodian, as managing director to lead the growth of its recently introduced stablecoin, USD Standard. According to a press release issued on Friday, the move reminds us that more work needs to be done to promote and expand the stablecoin services offered at BitGo.
Reynolds comes to BitGo with rich experience in fintech and banking, having served in the industry for over 25 years. Most recently, he worked for Silvergate Bank, which dealt with financial issues in early 2023 after the FTX collapse in November 2022; all the experiences he gained at this company will benefit BitGo in approaching the further development of digital currencies.
In his new job, Reynolds will be expected to oversee USD Standard, a stablecoin that would pay institutions to provide market depth. Another obvious advantage of Reynolds’s appointment for BitGo is that stablecoins remain his area of expertise; thus, he would be an asset to the firm seeking to expand into this space.
BitGo’s USD Standard: A New Era for Stablecoins
BitGo unveiled the USD Standard in mid-September. It is notable for its unique features, including a 1:1 supported by US dollars in short-term treasury bills, overnight reverse repos, and cash with real-time audited proof of reserves for unaudited transparency. This new idea is created to raise credibility and stability in the stablecoin industry.
However, it is important to note that BitGo continues to hold a near monopoly on the market, which it now controls at 96.6% through its wBTC token. Although the competition will heat up with many established players like Coinbase and Kraken entering this market, BitGo is now setting its sights on the USD Standard to exploit this need for stablecoins in cryptocurrency.
Excited by the new opportunity, Reynolds underlined the company’s focus on security and operations at BitGo. With USD Standard, we can find what a stablecoin could be. He said this is about building a better and more secure financial system for all.
In the upcoming years, the development of the cryptocurrency sphere, the further development of BitGo’s stablecoin plans, and the strengthening with Reynolds give the company a competitive edge for further growth.
