The digital currency Bitcoin has reached a new record high following the announcement from the investment banking arm of BNY Mellon, which will provide digital asset custody services, and the trend of major financial institutions investing in cryptocurrencies.
According to data from Coin Market Cap, the total market capitalization of the currency is approximately $879.15 million. The Bank of New York Mellon (BNY Mellon) has stated that it has begun financing Bitcoin and other cryptocurrencies. According to CNBC, the institution allows cryptocurrency assets to pass through the same financial network currently used for traditional holdings, such as U.S. Treasury bonds and stocks. Roman Regelman, CEO of Asset Servicing and Head of Digital Services at the Bank of New York, stated that the institution is the first global bank to announce plans to offer comprehensive digital asset services. Regelman added that the increasing customer demand for digital assets and the improvement in regulatory clarity presents a huge opportunity for the institution to provide services in this emerging field. Custody services are considered an essential part of the financial system as they ensure the safe holding of financial assets for clients. Bitcoin and other cryptocurrencies are not held by a centralized authority like a bank, which means that investors often lack a place to turn to if their funds are lost or stolen.
Mastercard also announced on Wednesday that it will support some cryptocurrencies on its network this year, offering customized cards to its clients that allow them to use their cryptocurrencies in transactions, even though these transactions do not pass through its network. Mastercard stated that this change could make merchants open to new clients who are already flocking to digital assets. The company added in its statement that it will not support all digital currencies on its network, noting that many of the hundreds of traded digital assets still need to tighten their compliance measures. Recently, several companies, such as asset management firm BlackRock and online payment specialists like PayPal and Square, also announced support for cryptocurrencies.
