X Rolls Out Banking Service to Paid Users in US, Marks Step Towards 'Everything App'
Elon Musk's social media platform X has officially launched its banking service, X Money, to all paid subscribers in the United States. The service, which was previously available only to a limited group of top-tier subscribers since late June, is now accessible to users on the Premium and Premium+ tiers.
X Money allows users to hold deposits, send money to other individuals, pay bills, transfer funds via wire, and mail cheques—all within the X application. Deposits are held at Cross River Bank, a New Jersey-based lender commonly used by financial technology apps, and are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
The move is part of Musk's long-standing ambition to transform X into an 'everything app,' similar to China's WeChat. WeChat integrates messaging, shopping, and payments, and is widely used for consumer spending in China.
According to a post by X Money, deposits will earn an annual percentage yield (APY) of up to six per cent. This rate is significantly higher than the roughly four to five per cent offered by competitive US high-yield savings accounts, and far above the near-zero rates at many large traditional banks. Premium+ subscribers can access the top rate directly, while Premium users must meet certain direct-deposit requirements.
Cross River Bank described the launch as the first government-insured banking platform in the United States built on a social network. The service positions X to compete with established payment apps such as PayPal's Venmo, Block's Cash App, and SoFi, leveraging X's user base of millions.
Prior to the launch, the service drew scrutiny from lawmakers. In a letter dated April 14, Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, questioned Musk about how X Money would generate sufficient revenue to offer such a high yield. She also pointed to past FDIC enforcement actions against Cross River Bank regarding lending practices.
X Money's rollout marks a significant step in Musk's vision for the platform, though it remains to be seen how users and regulators will respond to the integration of banking services within a social media app.
