Bitcoin’s price soared above the USD 48,000 level for the second time this week, hitting a new all-time high as Bank of New York Mellon said it would provide custody services for digital assets.
The world’s most valuable cryptocurrency hit an intraday record of $ 48,297 Thursday at approximately 8:30 a.m.ET on Thursday, according to data from industry site CoinDesk. It last traded more than 7% to trade around $ 47,913.
BNY Mellon, America’s oldest bank and a major custody provider, said on Thursday it would start funding bitcoin and other cryptocurrencies. The company will eventually pass crypto assets through the same financial network that it currently uses for more traditional holdings such as US Treasuries and stocks.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated digital asset service,” Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, said in a statement Thursday.
“The growing customer demand for digital assets, the maturity of advanced solutions and improving regulatory clarity provide us with a great opportunity to expand our current service offering into this emerging area.”
BNY Mellon is the latest major financial company to show its support for virtual currencies. On Wednesday, Mastercard said it would provide 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 worth of bitcoin and would soon accept it as a form of payment.
Bitcoin is up more than 60% since the start of the year after quadrupling in value in 2020. The sweltering rally of the digital currency has been boosted by increased demand from institutions, according to bulls, who say more experienced investors are warming up to the cryptocurrency due to to the perception that it is a store of value resembling gold.
However, skeptics worry that bitcoin is one of the biggest market bubbles in history.
Custody is an important part of the financial system as they ensure that clients’ financial assets are kept safe. Many companies have tried to address security in crypto. Bitcoin and other cryptocurrencies are not managed by a central authority such as a bank, which means investors often have nowhere to turn if their money is lost or stolen.