X, the company owned by Elon Musk and known for its Twitter platform, has been granted a currency transmitter license in Rhode Island, signaling a major step forward for its venture into the financial services sector.
A License for Financial Activities
The currency transmitter license is a legal requirement for companies engaged in financial activities involving the sending and receiving of money, including both fiat and crypto assets. With this approval, X will have the ability to custody, transfer, and exchange digital currencies.
The license, known as the Rhode Island Currency Transmitter License, was granted on Aug. 28, as reported by the Nationwide Multi-State Licensing System (NMLS).
Elon Musk's Vision for an "Everything App"
This development signifies a significant step in Elon Musk's ambition to turn X into an "everything app," which would encompass both crypto and fiat payments.
While sources indicate that the upcoming payments feature from X will initially support only fiat currencies, Musk has apparently instructed X developers to create a payments system that can incorporate crypto functionality in the future.
Expanding Licenses and Unclear Offerings
This latest approval comes nearly two months after X obtained money transmitter licenses in Michigan, Missouri, and New Hampshire, all of which were approved on July 5. X now holds transmitter licenses in a total of seven American states.
Despite the progress, it remains unclear what exactly X will offer in terms of financial services once the payment features are rolled out.
However, individuals familiar with the company's plans suggest that X will initially offer services for fiat currency transactions similar to PayPal, a company Elon Musk co-founded, leaving room for potential integration of cryptocurrencies in the future.
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