X Money Service Launched in 41 States as Elizabeth Warren Warns Elon Musk's Banking Ambitions Pose a Risk

X, the social platform formerly known as Twitter, first opened access to X Money to a small group of "Premium+" tier subscribers at the end of June for internal testing — Bitcoin.com News reported on this beta test immediately after its launch. This trial run was clearly organized to gather feedback ahead of yesterday's wider rollout.

The expansion lives up to those expectations: X Money is now available to users on both the standard Premium and Premium+ tiers nationwide, and for the first time, the product is moving out of "invite-only" mode.

What Premium Tier Users Get

Premium+ subscribers immediately get a 6% Annual Percentage Yield (APY) on their balance, while standard Premium users can earn the same rate after meeting direct deposit requirements. Each account comes with a virtual X Card that can be added to Apple Wallet, and the option to order a customizable physical metal card with the user's handle. Card purchases earn 3% cash back, there are no international transaction fees on transfers, and new users receive a $15 welcome bonus.

X Money also promises unlimited free transfers between users of the platform. "Your money on the world's most powerful network," wrote the official X Money account in connection with the launch, directly linking the product to X's built-in social features.

Where the Money Is Held and Who Oversees It

Deposits are held with Cross River Bank — a regulated partner that implements a cash placement program across multiple institutions to extend FDIC coverage up to $10 million per account, roughly 40 times the standard $250,000 limit. So far, X has obtained money transmitter licenses in 41 states and Washington D.C., although New York and Massachusetts have not yet granted approval.

Nevertheless, this expansion has not eased regulatory scrutiny, given that Senator Elizabeth Warren has criticized X for its banking ambitions, warning:

"If your track record managing X is any indicator of how you will manage X Money, then consumers, our national security, and the stability of the financial system could be at risk."

In her letter, she also pointed to a "suspicious carve-out" in the GENIUS Act — the 2025 federal stablecoin law — which she said allows companies like X to issue stablecoins without the same licenses required of traditional issuers, and expressed concern over previous FDIC enforcement actions against Cross River Bank.

What's Next

For now, X Money remains a fiat-based product, and stablecoin or token integration is unconfirmed. However, Grayscale's Head of Research, Zach Pandl, stated that the current version is more of a starting point than an end goal, adding:

While X Money will launch with traditional fiat-based, bank system infrastructure, a move toward deeper integration with crypto seems, in our view, inevitable. Cryptocurrencies will play a central role in that evolution.

With both Premium and Premium+ tier users now onboarded nationwide, the next key things to watch are whether X Money can reach all U.S. markets (as New York and Massachusetts issues remain unresolved) and whether Musk's banking channels can eventually connect to the crypto assets the company hinted at integrating from the product's initial presentation.