The price of Bitcoin has risen above the $ 48,000 level for the second time this week, hitting a new all-time high as Bank of New York Mellon has said it will provide custody services for digital assets.
The world’s most valuable cryptocurrency hit an intraday record of $ 48,297 at about 8:30 a.m. ET on Thursday, according to industry data on CoinDesk. The last trade increased by over 7% to trade around 47,913 USD.
BNY Mellon, America’s oldest bank and a major custody provider, said on Thursday it would start financing bitcoin and other cryptocurrencies. Eventually, the firm will allow cryptocurrencies to go through the same financial network it currently uses for more traditional holdings, such as US Treasury bonds and shares.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated digital assets service,” Roman Regelman, CEO of the activation service and head of digital at BNY Mellon, said in a statement on Thursday.
“The growing customer demand for digital assets, the maturity of advanced solutions and improved regulatory clarity are a great opportunity for us to expand our current service offerings in this emerging field.”
BNY Mellon is the latest major financial firm that has shown support for virtual currencies. On Wednesday, Mastercard said it would provide support for some cryptocurrencies in its network this year.
It also comes after Tesla’s announcement on Monday that it bought bitcoin worth $ 1.5 billion and would soon accept it as a form of payment.
Bitcoin has grown by more than 60% since the beginning of the year, after growing fourfold in value in 2020. The blistering rally of 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 the perception that it is a deposit of value similar to gold.
However, skeptics worry that bitcoin may be one of the biggest market bubbles in history.
Custody services are an essential part of the financial system, as they ensure the safe keeping of clients’ financial assets. Many companies have sought to address crypto security. Bitcoin and other cryptocurrencies are not maintained by a central authority, such as a bank, which means that investors often have nowhere to return if their funds are lost or stolen.