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| Bitcoin is rising after BNY Mellon accepts cryptocurrencies |
Bitcoin rose to more than $ 48,000 for the second time this week, a record high, after the company's investment bank BNY Mellon announced that it would offer digital asset custody services.
According to data from CoinDesk, the world's most valuable cryptocurrency reached $ 48,297 in daily trade.
BNY Mellon announced Thursday that financing for Bitcoin and other cryptocurrencies has begun and that the foundation has allowed crypto assets to flow through the same financial network it currently uses for traditional holdings such as US Treasury bonds and promotions.
BNY Mellon Bank, the New York Mellon Corporation bank was incorporated in 2007 through the merger of Bank of New York and Mellon Financial Corporation. It is an American holding company for investment banking services.
"The company is honored to be the first global bank to announce its intention to provide integrated services for digital assets," said Roman Rigelman, Head of Asset Services and Head of Digital Services at Bank of New York Mellon.
He added: Increasing customer demand for digital assets, maturity of advanced solutions, and improved clarity of regulation gives us tremendous opportunities to expand our existing services in this emerging field.
The Bank of New York Mellon Foundation is the latest major financial company to support virtual currency. Mastercard said it will add support for some cryptocurrencies to its network this year.
This also followed after Tesla announced that it would purchase $ 1.5 billion Bitcoin and soon accept it as a payment method.
Since the start of 2020, Bitcoin has tripled in value and increased by more than 60% since the start of the year.
As seasoned investors are turning to cryptocurrencies, which are seen as a store of gold-like value, the increase in digital currency is boosted by increased institutional demand.
Skeptics, however, fear that Bitcoin is one of the biggest market bubbles in history.
Custodial services are an important part of the financial system as they can ensure that clients' financial assets are safeguarded.
Many companies are trying to resolve crypto security concerns, and Bitcoin and other cryptocurrencies are not hidden from central institutions (such as banks), which means that investors often have nowhere to find them if their money is lost or stolen.