Elon Musk's social media platform, formerly known as Twitter and now rebranded as X, is pushing forward in its quest to provide users with a range of financial services, including cryptocurrency payments. A notable milestone on this journey was recently achieved as X secured a local license in the United States, issued by a regulator in Rhode Island.
Rhode Island, a northeastern U.S. state, issued the Currency Transmitter License, as per data from the Nationwide Multi-State Licensing System (NMLS) on August 28, 2023. This authorization encompasses the transfer and receipt of financial funds, covering both fiat currencies (such as dollars and euros) and cryptocurrencies (including Bitcoin and Ethereum).
With this freshly acquired license, X can now offer a spectrum of services, including asset transfer, custody, and digital asset exchange through its platform. This move aligns with Elon Musk's vision of transforming X into an all-encompassing application and mirrors the growing trend among major social media platforms venturing into the realm of financial services.
Rhode Island's license is not the first of its kind for X in the U.S. Previously, in July, the states of Michigan, Missouri, and New Hampshire issued separate authorizations, allowing the platform to offer payment services across seven administrative regions within the country.
While the specific details of X's payment services implementation remain undisclosed, sources familiar with the matter suggest that the offerings are anticipated to resemble those provided by PayPal. Notably, Musk was one of the co-founders of the renowned payment giant.
In recent months, X has taken significant steps toward expanding its financial service offerings. Integrating with the social trading platform, eToro, users gained the capability to buy and sell stocks and other assets using a $Cashtag symbol.
In addition, there are indications that X is actively seeking partnerships in the financial data sector, aiming to establish a fully independent trading hub within its platform. This endeavor involves reaching out to major corporations for financial information, live stock market data, and related services, highlighting its extensive user base of 'hundreds of millions of qualified users.' It's essential to note that Elon Musk acquired Twitter for a substantial $44 billion last year, subsequently taking the company private.