BitGo taps former Silvergate president to oversee stablecoin business as market for USD-pegged tokens expands

Crypto custody firm BitGo said on Friday it has hired former Silvergate Bank President Ben Reynolds to oversee the growth of its USD Standard stablecoin.

BitGo aims to launch USD Standard early next year.

The USD-pegged stablecoin market has been experiencing steady growth for more than a year with numerous prominent players launching their new stablecoins. Long-time fintech giant PayPal has launched its own stablecoin, while Ripple ,  Revolut,  and  Robinhood are also eyeing possible launches. Tether's USDT remains the most popular stablecoin by market cap.

The former Silvergate executive will be tasked with promoting the adoption of BitGo's USD Standard, "an open-participation stablecoin featuring a reward system that deploys earnings to participants who support the ecosystem," according to a statement.

Silvergate Bank  liquidated and shuttered its doors last year. Then this past July, the U.S. Securities and Exchange Commission sued the crypto-friendly bank for making false statements to the public about its anti-money laundering procedures. The SEC also charged the bank's CEO Alan Lane, former COO Kathleen Fraher and former CFO Antonio Martino.

A BitGo spokesperson said when Reynolds was at Silvergate Bank — he served as president for five months, according to his LinkedIn — he built the Silvergate Exchange Network and was not involved with settlements. Silvergate suspended its Silvergate Exchange Network early last year.

"We are excited to welcome Ben to BitGo during this pivotal period of growth for the company," BitGo CEO Mike Belshe said in a statement. "Ben’s outstanding track record of developing and scaling transformative digital asset payment infrastructure and deep understanding of stablecoins will be a significant asset to us, particularly as we expand the USD Standard network."

Reynolds has previously worked at both HSBC bank and the auditing firm of KPMG, the statement said.