- X granted a crypto wallet license in a US state, enhancing virtual asset services.
- X enables secure crypto storage, and introduces broader audiences to cryptocurrencies, expanding the market.
- Musk’s pitch forecasts Twitter’s potential $1.3B revenue from payments by 2028, contrasting the current $15 million income.
Elon Musk’s social media platform X, previously known as Twitter, has been granted the authorization to provide cryptocurrency wallet services within a state in the United States. On August 28th, as indicated in the NMLS data, X received approval for the Rhode Island Currency Transmitter License. This specific license is essential for offering services related to virtual assets on behalf of users.
With this development, users of X will gain the ability to securely store, send, and receive a variety of cryptocurrencies. This strategic move has the potential to bring about a significant shift within the platform’s payments sector. Additionally, it holds the promise of introducing cryptocurrencies to a wider range of individuals, consequently fostering the expansion of the cryptocurrency market to include new users.
In the past, X took a significant stride towards integrating cryptocurrencies by introducing a Bitcoin tipping feature to the platform. Back in 2021, Twitter announced the rollout of its Tips feature on iOS and mentioned that the feature would be made available on Android soon. Apple’s iOS users were able to tip creators using third-party services like CashApp, which was operated by Square, a payments startup founded by Jack Dorsey, by clicking on the designated option. Users were then capable of tipping with Bitcoin, facilitating more accessible monetization in areas where physical currency was not readily at hand.
During a conference call with reporters, the company unveiled the new features and highlighted that “Bitcoin functions without international barriers.” The Bitcoin component will be facilitated by the Lightning Network, a layer-two solution selected by product manager Esther Crawford due to its reduced transaction fees. Users had the option to enable the sending and receiving of tips in Bitcoin by integrating their Bitcoin Lightning wallet or Bitcoin address.
Nevertheless, the question remains whether Elon Musk will grant permission for X to offer cryptocurrency-related services. The billionaire entrepreneur has previously made it clear that X will not introduce its own cryptocurrency token, citing the prevalence of deceptive marketing tactics involving newly established tokens that share naming similarities with the “everything app.”
In a pitch deck presented to investors in May, Musk suggested incorporating payments into Twitter, proposing that the platform could potentially amass up to $1.3 billion in revenue by 2028. Presently, the platform’s income from payment functionalities such as tipping and shopping is relatively modest, amounting to approximately $15 million annually.
