(Reuters)

Bitcoin jumped over 8 per cent to an all-time high of US$48,481 after Bank of New York Mellon said it had formed a new unit to help clients hold, transfer and issue digital assets.

The new unit at BNY Mellon, called the Digital Assets unit, is expected to roll out the offerings later this year, the bank said.

BNY Mellon, the oldest financial institution in the United States, with its Digital Assets unveiling, signals a big step for Wall Street’s back-office banks, whose concerns over regulatory, legal and stability risks left them reluctant to come into direct contact with crypto markets.

Bitcoin was last up 5.7 per cent at US$47,387.