Elon Musk’s long-planned financial super app has become a reality. Launched last week for Premium+ members, the “X Money” service became available to other verified user groups starting June 29.
“Elchi” reports that the platform offers a 6% annual interest rate on deposits, a personalized metal Visa debit card, peer-to-peer (P2P) transfers, 3% cashback, and up to $10 million in government backing (FDIC insurance) for top-tier subscribers.
How does the banking infrastructure work?
Since X does not have a banking license, it uses the “Bank as a Service” (BaaS) model.
User deposits are held under the guarantee of Cross River Bank, based in New Jersey. While the infrastructure provides FDIC protection of up to $250,000 for standard accounts, it increases the guarantee limit to $10 million for Premium+ subscribers by distributing money across multiple partner banks in the background, thanks to a specially designed cash sweep system. Payment transfers are processed via Visa Direct, Visa’s real-time payment system. Unlike standard bank transfers (ACH), this infrastructure allows users and content creators to receive instant payments. The service is currently available to verified users aged 18 and over in 41 US states where X Payments LLC holds a money transmitter license. New York and Massachusetts are among the states that have not yet received a license.
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