Rhode Island regulators have granted X (Twitter) a money transmission license, marking another step forward for the company’s foray into financial services.
A license is legally required for companies that conduct financial activities related to sending and receiving funds on behalf of users — a definition that includes both fiat and crypto assets. The approval will allow X to host, transfer and exchange digital currencies.
X’s Rhode Island Money Transmitter License Approved Aug. 28 according to National Multistate Licensing System (NMLS).
The move marks an important step in Elon Musk’s push to make X an “app for everything,” which includes cryptocurrencies and fiat payments.
While sources say X’s upcoming payments feature will initially only offer support for fiat currencies, Musk has reportedly instructed X’s developers to build the platform’s payment system so that encryption can be added in the future.
The approval comes nearly two months after X received money transmission licenses in Michigan, Missouri and New Hampshire, which were all approved on July 5. X’s latest license marks its acquisition of transmission licenses in a total of seven US states.
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It’s unclear what financial products X will offer when it rolls out payments.
People familiar with the company’s plans said X would initially offer fiat currency transactions similar to PayPal, which Musk co-founded, with room for future crypto integration.
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