Elon Musk launches X Money digital banking service in the United States

Elon Musk's X platform introduced the X Money service, initially rolled out to Premium+ subscribers and expanded on June 29 to all verified users. The fintech offering provides a 6% annual interest rate on deposits, a metal Visa card with 3% cashback, instant peer‑to‑peer transfers via Visa Direct, and FDIC insurance coverage up to $10 million for Premium+ accounts.

X Money operates without a banking license, using a Banking‑as‑a‑Service model that relies on Cross River Bank in New Jersey to hold customer funds. Standard accounts receive up to $250 000 of FDIC protection, while Premium+ users benefit from a “Cash Sweep” system that spreads deposits across multiple partner banks to reach the $10 million limit. The service is currently available in 41 U.S. states; New York and Massachusetts remain excluded pending licensing approval.

The launch has sparked regulatory attention. Senate Banking Committee member Elizabeth Warren has questioned the sustainability of the 6% yield and raised concerns about data security and Cross River Bank’s past practices. State‑level officials in New York have also urged the Financial Services Department to block the service until further review. Musk positions X Money as a “super‑app” aimed at rivaling platforms like WeChat, but faces competition from established digital payment providers such as PayPal, Venmo, Cash App and Apple Pay.