Musk takes new step towards ‘everything-in-one app’ with wider rollout of X Money
In a strategic move to transform X into a comprehensive ‘all-in-one app’, Elon Musk has extended the availability of X Money to all users in the United States with a Premium subscription. This banking feature, which has been tested to a limited extent since June among a select group of high-tier users, is now accessible to a broader audience.
The platform integrates various financial capabilities directly into the social media experience, allowing members to manage their balances, make peer-to-peer transfers, pay bills, and handle transfers or cheques sent by post.
To guarantee security, the funds are managed by Cross River Bank, a New Jersey institution widely used by fintech companies. These balances are protected by the FDIC up to an amount of $250,000 (around €220,000).
Musk’s vision for the platform is strongly influenced by WeChat, the Chinese super-app that brings together communication, e-commerce and financial transactions in a single interface.
To attract users, X Money offers an annual return of up to 6% on deposits. This rate exceeds the usual returns at traditional banks and is higher than the 4-5% offered by many leading high-yield savings options in the United States.
While Premium+ members have immediate access to this maximum rate, members on the standard Premium tier must meet specific criteria for automatic transfers.
Cross River Bank has described this initiative as the first case in the US in which a social network is hosting a government-insured banking system.
By leveraging its enormous user base, X is now in a position to challenge dominant payment services such as Cash App, Venmo and SoFi.
The rollout has not been without political opposition, however. Senator Elizabeth Warren, a prominent member of the Senate Banking Committee, expressed in a letter dated 14 April her concerns about the sustainability of the high interest rates.
In addition, she raised questions about Cross River Bank’s regulatory history, specifically referring to previous FDIC measures relating to the lender’s operational practices.
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