Rhode Island regulators have granted the social media giant, referred to as X, a currency transmitter license. This license is a legal prerequisite for companies engaged in financial activities related to money transmission, containing both traditional fiat currencies and cryptocurrencies. The newly obtained approval empowers X to securely hold, transfer, and exchange digital currencies, propelling the company’s ambitions in the evolving digital finance landscape.
According to the Nationwide Multi-State Licensing System (NMLS), X’s Rhode Island Currency Transmitter License was officially sanctioned on August 28. This development is a notable step forward in the pursuit of Elon Musk’s vision for X to transform into an “everything app,” containing not only social media but also financial services, including both conventional and crypto-based payments.
While NMLS suggests that X’s upcoming payments feature may initially focus on facilitating fiat currency transactions, sources close to the matter disclose that Elon Musk has given detailed instructions to X’s development team to build the payments system in a manner facilitative to the future integration of cryptocurrency functionalities.
The Rhode Island licensing accomplishment follows closely on the heels of X securing money transmitter licenses in three other states including Michigan, Missouri, and New Hampshire. All three of these approvals were granted on July 5, consolidating X’s standing as a licensed financial services provider in a total of seven U.S. states.
Despite this remarkable achievement, the exact array of financial services and offerings that X will introduce with the rollout of its payment features remains shrouded in mystery. Insiders familiar with the company’s strategic plans have indicated that X’s initial offerings will mirror the fiat currency transaction services pioneered by platforms like PayPal — a company co-founded by Elon Musk himself. However, the design of the payments infrastructure is intentionally versatile, allowing for seamless integration of cryptocurrency functionalities in the foreseeable future.
Despite this remarkable achievement, X plans to introduce payment features, drawing inspiration from platforms like PayPal initially, with the potential for cryptocurrency integration in the future. The full range of financial services remains undisclosed as of now.
Earlier, in April 2023, Twitter partnered with eToro for in-app trading, as part of Elon Musk’s vision to create a super app offering social media, trading, gaming, and more. On July 26, 2023, Elon Musk’s X Corp. transformed Twitter into “X,” aiming to create a comprehensive financial services platform, and now Rhode Island regulators have granted the currency transmitter license. The goal is an all-in-one app integrating half of the global financial system; this shift has the potential to revolutionize user financial interactions.