Elon Musk`s social media platform X on Monday expanded its X Money banking service to all US users subscribed to its Premium and Premium+ plans, marking a major step in his vision of transforming the platform into an "everything app."
The rollout extends a service that had been available only to a limited group of top-tier subscribers since late June.
X Money allows users to manage deposits, send peer-to-peer payments, pay bills, make wire transfers and mail cheques without leaving the app.
Customer deposits are held at New Jersey-based Cross River Bank and are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.
Musk has long said he wants X to emulate China`s WeChat, which combines messaging, shopping and digital payments within a single platform and plays a central role in everyday consumer transactions.
As part of the launch, X Money said eligible users could earn an annual percentage yield (APY) of up to 6% on deposits.
The highest rate is available to Premium+ subscribers, while Premium users must meet direct-deposit requirements to qualify.
The advertised yield exceeds the roughly 4% to 5% offered by many of the most competitive high-yield savings accounts in the United States and is significantly higher than rates typically available at large traditional banks.
Cross River described X Money as the first government-insured banking platform in the United States to operate through a social media network.
The service positions X to compete with digital payment platforms such as PayPal`s Venmo, Block`s Cash App and SoFi by leveraging its large user base.
The launch has also attracted political scrutiny.
In April, Senator Elizabeth Warren questioned how X Money would generate enough revenue to support its advertised returns and referenced previous FDIC enforcement actions involving Cross River over its lending practices.
