X Money begins its rollout to certain Premium+ subscribers with a spectacular promise: to protect up to $10 million in deposits through a bank distribution program. Elon Musk's financial service also offers an announced annual return of 6%, a Visa card and transfers between users. An offensive that brings X even closer to its ambition of becoming a universal application.
In brief
- X Money offers FDIC coverage of up to $10 million.
- The service advertises a return of 6% and a Visa card.
- Its expansion remains closely monitored by American regulators.
X Money rolls out expanded banking insurance
X Money is introducing a program called Cash Sweep, capable of offering FDIC coverage of up to $10 million. This progress comes after several months of testing and preparation around the launch of X Money. The guarantee does not mean that a single account directly benefits from a new federal limit. In the United States, standard protection generally remains set at $250,000 per depositor per insured bank. The program therefore automatically distributes liquidity between several partner establishments.
Each portion of the deposit can thus benefit from the limit applicable in the bank which receives it. By mobilizing a sufficiently large network, X Money can increase cumulative coverage up to $10 million. The mechanism already exists in wealth management, but its integration into a social network gives it a completely different scope.
Conventional X Money balances would be held with Cross River Bank, up to the usual limit of $250,000. The bank sweep program mainly targets users with higher amounts.
X Money promises an annual return of 6%
Beyond insurance, X Money offers an annual return of up to 6% on liquidity. This rate constitutes a powerful argument against traditional bank accounts, whose remuneration often remains less attractive.
The service also provides a personalized metal debit card with the holder's X identifier. Users could receive up to 3% cashback on certain purchases, make transfers between individuals and avoid fees on transactions made abroad.
Visa provides part of the payment infrastructure. This partnership should make it possible to fund accounts, transfer money and use the card in compatible businesses. X Money therefore presents itself more as an integrated financial account than as a simple digital wallet.
However, no direct integration of cryptocurrencies has been confirmed. Despite Elon Musk's ties to bitcoin and Dogecoin, the current product relies heavily on dollar deposits and traditional banking rails. This absence could place X Money in front of crypto rather than at the heart of it.
Elon Musk wants to replace several applications
With X Money, Elon Musk is pursuing an old idea: transforming X into a super-application bringing together messaging, content, commerce and financial services. The model is reminiscent of China's WeChat, where users can chat, shop and transfer money without switching apps.
Musk has previously claimed that the service could reduce the need for a traditional bank account. The formula remains ambitious. X Money still depends on partner banks, Visa and the federal insurance system to operate.
Its main advantage lies elsewhere: distribution. X already has a large user base. Even limited adoption among the most active subscribers could quickly give the service significant scale in digital payments.
The deployment to Premium+ subscribers then serves as a controlled test. X first targets the most engaged users who are most likely to try new products. A wider extension could follow after the evaluation of the first uses and technical risks.
This financial expansion is already attracting political attention. Senator Elizabeth Warren asked for clarification on consumer protection, data security and X's ability to manage funds without exposing its users to loss or fraud.
X Money nevertheless has considerable potential. Its association with Visa, the licenses already obtained in many states and the audience of X give it a solid base. But the real test will not only be technological. Elon Musk will need to prove that his service properly protects funds and data while realizing his vision of a complete financial platform.
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