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XLaunches X Money for U.S. Premium Subscribers

X is folding deposits, payments and a Visa debit card into its app, prompting scrutiny over how the advertised 6% APY will be funded.

Overview

  • X began rolling X Money out to U.S. Premium and Premium+ subscribers on Monday, offering in‑app deposit accounts, peer‑to‑peer transfers, early direct deposit and a Visa debit card.
  • Customer deposits are held at Cross River Bank with standard FDIC insurance up to $250,000 and an optional cash‑sweep program that X says can provide pass‑through FDIC coverage up to $10 million for eligible users.
  • Premium+ members qualify immediately for the advertised up to 6% APY while standard Premium users must meet qualifying direct‑deposit conditions to reach the top rate.
  • Regulators and lawmakers have raised questions about consumer protections and funding for the 6% yield, including a formal letter from Senator Elizabeth Warren and scrutiny tied to Cross River’s prior FDIC enforcement history.
  • The fiat‑only launch gives X direct access to payments rails and distribution inside its app and creates optionality for future product moves that could change who captures deposit float and how customers are protected.