Steeped in history, the venerable U.S. bank BNY Mellon is expanding its portfolio to include cryptocurrencies. Bitcoin and Co. are increasingly in demand from customers, it said in justification. BTC subsequently jumped to a new all-time high.
In the night to today’s Friday, Bitcoin (BTC) has exceeded the price mark of 48,000 US dollars for the first time in its history. The reason for the new all-time high lies in New York, where the custodian bank Mellon has resided in Manhattan since 1784. Because BNY Mellon announced via press release to expand its range of products to include cryptocurrencies such as Bitcoin before the end of 2021. BNY Mellon is the oldest US bank ever and thus a symbol for banking in general. Accordingly, BNY Mellon’s move received a lot of attention, even into international media.
Established financial world can no longer ignore Bitcoin
Just a few years ago, the prevailing opinion among established banks and Wall Street was that Bitcoin was a temporary phenomenon. At the turn of the year 2017/8 with the first Bitcoin boom, some financial institutions did draft ideas on how they could participate in the crypto business. But by the end of 2018, interest had already faded and the major banks stamped out their Bitcoin projects.
The situation is now completely different at the beginning of 2021: Bitcoin and, in tow, some important altcoins are establishing themselves right into the middle of society and are understood by many as a protection against inflation and a practical digital currency. This leads quite automatically to the fact that even banks can no longer close their minds to the topic. BNB Mellon wants to get down to business right away and is founding a subsidiary for digital asset classes for this purpose. It sees itself as a pioneer among the major global banks. In the future, BNY customers will be able to buy and sell Bitcoin and other selected cryptocurrencies just as easily as they can already buy and sell shares, funds and related financial instruments.
Also this week, Mastercard had announced that it would fully integrate cryptocurrencies such as Bitcoin into its payment system. Other financial institutions and financial service providers are likely to follow suit. Such news also makes it clear that the financial world in the U.S. is now confident that it has resolved regulatory issues related to cryptocurrencies. This is because BNY, for example, will also hold bitcoin in trust for customers, which poses different difficulties than securities or gold.
Conclusion: bullish outlook for Bitcoin
Financial markets are always driven by psychology to some extent, and thus the pro-Bitcoin signals from Wall Street and comparable marketplaces should not be underestimated. At the same time, Mastercard, BNY Mellon and others are each opening up new customer groups for Bitcoin, which in turn tends to increase demand and capital flows. The next magic mark of 50,000 US dollars seems to be within reach for Bitcoin.
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