Overview
- X began widening access to X Money for U.S. Premium and Premium+ subscribers in late July after a June invite-only test, moving the product from limited beta to broad paid rollout.
- The service embeds deposit accounts, peer-to-peer instant transfers by @handle, bill pay, wire transfers, direct deposit, and a Visa-backed X Card that offers 3% cash back and fee-free ATM withdrawals.
- Customer funds are held at Cross River Bank and receive standard FDIC insurance up to $250,000 with an optional cash-sweep program that X says can provide up to $10 million in pass-through coverage for eligible users.
- X is not a bank: it operates X Money through X Payments LLC with money-transmitter licenses in 41 states; service is not yet available in New York or Massachusetts pending state approvals and regulatory review.
- The advertised 6% APY is widely seen as a promotional acquisition tool, Congress and regulators have pressed X for disclosures about how the yield will be funded, and the product creates optionality for a future non‑bank model such as issuing a stablecoin that would remove FDIC protections.