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Bitcoin hit a fresh record Thursday, soaring to new highs following continued buy-in from major institutions.
On Thursday, Mastercard announced it will allow merchants to accept select cryptocurrencies on its network starting later this year, while Bank of New York Mellon said that it will issue, hold, and transfer bitcoin for clients in the future.
The price of bitcoin surged to an intraday high of $48,364.06 on Thursday. It is the second time the world’s most popular cryptocurrency has blown past the $48,000-mark this week.
Mastercard joins a handful of companies embracing digital tokens as payment. Earlier this week, Tesla said it will also start accepting bitcoin as payment for its products, while also disclosing a $1.5 billion bitcoin investment. The price of the digital asset spiked to record levels on the news.
BNY Mellon on Thursday said it is exploring how to allow cryptocurrency assets to pass through the same financial network it uses for more traditional holdings such as stocks and bonds, the Wall Street Journal first reported.
Bitcoin – which is not regulated by any central authority – has risen more than 60% since the start of this year, lifted by increasing demand from institutions, celebrities, and large investors.
The token, however, has faced scrutiny from policymakers and regulators as the price continues to skyrocket. US Treasury Secretary Janet Yellen on Wednesday called the “misuse of cryptocurrencies” a growing problem.
“I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” Yellen said.