Elon Musk’s X moves closer to crypto payments with new state license

5


Rhode Island’s regulators have granted X (Twitter) a currency transmitter license marking a step forward for the company’s foray into the financial services sector. 

The license is legally required for companies conducting financial activities on behalf of users related to sending and receiving money — a definition that includes both fiat and crypto assets. The approval will allow for X to custody, transfer and exchange digital currencies.  

X’s Rhode Island Currency Transmitter License was approved on Aug. 28 according to the Nationwide Multi-State Licensing System (NMLS).

X has a total of seven money and currency transmitter licenses. Source: NMLS

The move marks an important step forward in Elon Musk’s push for X to become an “everything app” — which would include crypto and fiat payments.

While sources have suggested that X’s upcoming payments feature will initially only offer support for fiat currencies, Musk has reportedly instructed developers at X to build the platform’s payments system in such a way that crypto functionality can be added in the future. 

The approval comes nearly two months after X secured money transmitter licenses in Michigan, Missouri and New Hampshire which were all approved on July 5. X’s latest license marks a total of seven American states it’s secured transmitter licenses in.

Related: Elon Musk praises pro-crypto Republican presidential candidate

It remains unclear exactly what financial offerings will be made available if and when X rolls out payment features.

People familiar with the company’s plans have indicated X will initially offer fiat currency transaction services similar to PayPal — which Musk co-founded — with room for future crypto integration.

Deposit risk: What do crypto exchanges really do with your money?