The price of Bitcoin soared above the $ 48,000 level for the second time this week, hitting an innovative high as Bank of New York Mellon said it would provide capture services for digital assets.
The world’s most valuable cryptocurrency hit an intraday record of $ 48,297 at around 8:30 a.m. ET on Thursday, according to data from business site CoinDesk. It eventually traded up more than 7% to trade around $ 47,913.
BNY Mellon, America’s oldest bank and major holding provider, said Thursday it would begin funding bitcoin and other cryptocurrencies. The company will eventually allow crypto asset assets to pass through the same financial network it currently uses for more traditional holdings such as U.S. Treasury bonds and shares.
“BNY Mellon is proud to be the first global bank to announce plans to provide a unified service for digital assets,” Roman Regelman, BNY Mellon’s head of asset servicing and head of digital, said in a statement Thursday.
“Growing consumer demand for digital assets, the quality of advanced solutions, and regulatory clarity provide us with a unique opportunity to expand our current service offerings to this emerging field. “
It also comes after Tesla announced Monday that it had bought $ 1.5 billion worth of bitcoin and would soon accept it as a payment method.
Bitcoin is up more than 60% since the beginning of the year after a quadruple value in 2020. The blistering rally of the digital coin was driven by increased demand from institutions, according to bulls, which say investors more expert warming to the cryptocurrency to pay to the idea that it is a store of gold-like value.
Skeptics, however, are concerned that bitcoin may be one of the largest market bubbles in history.
Catching services are a key part of the financial system, as they ensure that clients ’financial assets are held securely. Many companies have tried to address security in crypto. Bitcoin and other cryptocurrencies are not held by a central authority like a bank, meaning investors often have no place to turn if their money is lost or stolen.