Rhode Island regulators have granted X, a venture associated with Elon Musk, a currency transmitter license, marking a significant stride in the company’s entrance into the financial services realm. This license is a legal prerequisite for businesses engaged in financial activities involving the sending and receiving of money, encompassing both traditional fiat and cryptocurrency assets. With this approval, X gains the capability to securely manage, transfer, and trade digital currencies.
This development plays a pivotal role in realizing Elon Musk’s ambition for X to evolve into an all-encompassing “everything app,” encompassing both traditional and cryptocurrency-based financial transactions.
While initial reports suggest that X’s upcoming payments feature may primarily support fiat currencies, Musk has purportedly guided X’s developers to design the payments infrastructure with future cryptocurrency functionality in mind.
The Rhode Island license comes after X previously obtained money transmitter licenses in Michigan, Missouri, and New Hampshire, all granted on July 5. With this recent addition, X has now secured licenses in a total of seven American states.
The exact scope of financial services that will accompany X’s payment features remains uncertain at this stage. Industry insiders have hinted that X’s initial offerings will resemble PayPal‘s fiat currency transaction services, a company co-founded by Elon Musk, with provisions for seamless integration of cryptocurrencies in the future. The move underlines the growing convergence of traditional finance and the crypto landscape.