X launches banking service for US subscribers

• X has launched its X Money banking service for US Premium and Premium+ subscribers.
• The service enables users to manage deposits, make payments, and transfer funds within the X app.
• Deposits are FDIC-insured up to $250,000 through Cross River Bank.
• X Money offers a potential annual percentage yield of up to six percent.
• The launch aims to transform X into an 'everything app,' similar to China's WeChat.

Elon Musk's social media platform X has expanded its X Money banking service to all US subscribers of its paid Premium and Premium+ tiers. This move is part of Musk's broader vision to transform X into an 'everything app,' mirroring the functionality of China's WeChat.

The X Money service allows users to conduct various financial transactions, including holding deposits, sending peer-to-peer payments, paying bills, and initiating wire transfers, all within the X application. Deposits made through X Money are held by Cross River Bank, a financial institution utilized by several fintech applications, and are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.

Deposits held within X Money are advertised to earn an annual percentage yield of up to six percent, significantly higher than the rates offered by most traditional banks and competitive with high-yield savings accounts. Premium+ subscribers are eligible for this top rate directly, while Premium users must meet specific direct-deposit requirements.

The launch has not been without scrutiny. Senator Elizabeth Warren, a prominent figure in the Senate Banking Committee, previously raised concerns in a letter to Musk regarding the service's revenue generation strategy to support the high yield and cited past FDIC enforcement actions against Cross River Bank concerning its lending practices.