Bitcoin’s price rose above the $ 48,000 level for the second time this week and reached a new everyday high when Bank of New York Mellon said it would provide digital asset protection services.
The world’s most valuable cryptocurrency hit an intraday record of $ 48,297 around 8:30 a.m. ET on Thursday, according to data from industry site CoinDesk. It was last more than 7% higher and traded around $ 47,913.
BNY Mellon, America’s oldest bank and a major hedging provider, said on Thursday that it would start financing bitcoin and other cryptocurrencies. The firm will eventually allow cryptocurrencies to go through the same financial network that is currently used for more traditional stocks such as U.S. Treasury bonds and equities.
“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated digital asset service,” said Roman Regelman, chief executive officer of assets and digital at BNY Mellon, in a statement on Thursday. said.
“The growing customer demand for digital assets, maturity of advanced solutions and the improvement of regulatory clarity provide a tremendous opportunity for us to expand our current service offering to this emerging area.”
BNY Mellon is the latest major financial company to offer support for virtual currencies. On Wednesday, Mastercard said it was supporting some cryptocurrencies in its network this year.
It also comes after Tesla’s announcement on Monday that it had bought $ 1.5 billion worth of bitcoin and would soon accept it as a means of payment.
Bitcoin has risen more than 60% since the beginning of the year after doubling in value in 2020. The digital currency rush has been boosted by rising demand from institutions, according to Bulls, which says more experienced investors are warming up the cryptocurrency . to the perception that it is a value store similar to gold.
Skeptics, however, are concerned that bitcoin may be one of the biggest market bubbles in history.
Custody services are an important part of the financial system as they ensure that customers’ financial assets are kept safe. Many companies have tried to address security in crypto. Bitcoin and other cryptocurrencies are not maintained by a central government such as a bank, which means that investors can often turn nowhere if their funds are lost or stolen.