Bitcoin’s price soared beyond the $ 48,000 level for the second time this week, reaching a new record, as Bank of New York Mellon said it would provide custody services for digital assets.
The world’s most valuable cryptocurrency reached an intraday record of $ 48,297 at around 8:30 am (Eastern Time) on Thursday, according to data from the CoinDesk website. The latest trade was up more than 7% to around $ 47,913.
BNY Mellon, America’s oldest bank and a major custody provider, said on Thursday that it would start financing bitcoins and other cryptocurrencies. The company will allow crypto assets to pass through the same financial network it currently uses for more traditional holdings, such as U.S. Treasury bonds and stocks.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets,” said Roman Regelman, CEO of asset services and digital chief at BNY Mellon, in a statement on Thursday.
“The growing customer demand for digital assets, the maturity of advanced solutions and the improvement of regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field.”
BNY Mellon is the latest major financial company to show support for virtual currencies. On Wednesday, Mastercard said it would offer support for some cryptocurrencies on its network this year.
It also comes after Tesla’s announcement on Monday that it had purchased $ 1.5 billion in bitcoin and would soon accept it as a form of payment.
Bitcoin has risen more than 60% since the beginning of the year after quadrupling in value in 2020. The scorching digital currency rally was driven by increased demand from institutions, according to the bulls, who say more experienced investors are enthusiastic about cryptocurrency due to the perception that it is a store of value similar to gold.
Skeptics, however, fear that bitcoin is one of the largest market bubbles in history.
Custody services are a fundamental part of the financial system, as they ensure that clients’ financial assets are kept securely. Many companies have sought to address encryption security. Bitcoin and other cryptocurrencies are not maintained by a central authority like a bank, which means that investors often have nowhere to turn if their funds are lost or stolen.