Bitcoin’s price rose above $ 48,000 levels for the second time this week, hitting a new all-time high when the Bank of New York Mellon announced it would provide custody services for digital assets.
The world’s most valuable cryptocurrency hit an intraday record of $ 48,297 on Thursday around 8:30 a.m.CET. This comes from data from the industry site CoinDesk. It last traded more than 4% to trade around $ 47,670.
BNY Mellon, America’s oldest bank and major custody provider, announced Thursday that it would begin funding Bitcoin and other cryptocurrencies. The company will eventually allow crypto assets to travel over the same financial network 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 deliver an integrated service to digital assets,” said Roman Regelman, CEO of Asset Service and Head of Digital at BNY Mellon, in a statement Thursday.
“The growing customer demand for digital assets, the maturity of advanced solutions and the improvement in regulatory clarity offer us a tremendous opportunity to expand our current service offering in this emerging area.”
BNY Mellon is the latest major financial company to show support for virtual currency. On Wednesday, Mastercard announced that it would offer support for some cryptocurrencies on its network this year.
It also comes after Tesla’s announcement on Monday that it bought $ 1.5 billion worth of Bitcoin and will soon be accepting it as payment.
Bitcoin is up more than 60% since the start of the year after quadrupling in value in 2020. The rapid rally in digital coins, according to Bullen, was fueled by increased demand from institutions, who say seasoned investors are warming to the maturing cryptocurrency to the perception that it is a store of value that resembles gold.
However, skeptics fear that Bitcoin could be one of the largest market bubbles in history.
Custody services are an essential part of the financial system as they ensure that clients’ financial assets are kept safe. Many companies have tried to improve security in crypto. Bitcoin and other cryptocurrencies are not managed by a central authority like a bank, which means that investors often have no way of turning if their money is lost or stolen.