American billionaire Elon Musk has officially launched his long-anticipated financial super-app project, marking a significant expansion of the social media platform's utility. According to Operative Information Center-OMM, citing international media reports, the service aims to integrate banking features directly into the user experience.
The "X Money" service, which was initially rolled out to "Premium+" subscribers last week, became available to other verified user groups starting June 29. The platform offers users an annual yield of 6 percent, a personalized metal Visa bank card, instant peer-to-peer (P2P) money transfers, 3 percent cashback, and, for "Premium+" subscribers, up to $10 million in government-backed (FDIC) deposit insurance.
Since "X" does not possess a banking license, the service operates under the "Banking as a Service" (BaaS) model. User funds are secured through the New Jersey-based Cross River Bank. While standard accounts receive the traditional $250,000 FDIC insurance coverage, the "Cash Sweep" system for "Premium+" users automatically distributes funds across multiple partner banks to increase the insurance limit to $10 million.
Money transfers are processed in real-time via the Visa Direct system, allowing users and content creators to receive payments instantly, bypassing the delays associated with traditional ACH transfers. Currently, the service is active only for verified users over the age of 18 in 41 U.S. states where "X Payments LLC" holds money transmitter licenses. The service is not yet available in New York and Massachusetts.
The launch of "X Money" represents a strategic move by Elon Musk to transform the platform into an "everything app," similar to the WeChat model in China, which combines social networking with comprehensive financial services. By integrating banking directly into the social media interface, Musk aims to increase user retention and create new revenue streams for content creators and businesses operating within the ecosystem.
