X now has a license for crypto payments and trading in the US

The social platform will now be able to store and exchange cryptocurrencies on behalf of its users.
Loukia Papadopoulos
Representational image of cryptocurrencies..jpg
Representational image of cryptocurrencies.


Elon Musk’s social media platform X now officially has a license for crypto payments and trading in the United States. 

This is according to a report by The Crypto Times published Tuesday.

The cryptocurrency news outlet cited data displayed on NMLS as the source of the new information and said the license is called the Rhode Island Currency Transmitter License. Awarded to X on August 28, the license will give X permission to provide virtual asset related services and allow its many users to exchange cryptocurrencies on its famous platform.

This is not Musk’s first foray into crypto.

Musk has already ventured into crypto

In April of 2023, Twitter, which is now known as X, introduced an option to let its users buy stock, cryptocurrencies, and other financial assets through its app.

The move at the time marked the first major change under Musk's leadership since the social media platform had recently been acquired by the billionaire.

The new app feature was made possible through a partnership with eToro, a social trading firm that allows clients to buy and sell financial assets including stocks, cryptocurrencies, and index funds.

The development was an expansion of Twitter’s already popular "cashtags" feature that allowed users to view trading data of index funds and some companies in real-time. Cashtags was powered by an application programming interface (API) from TradingView, a charting platform for investors and traders.

eToro's partnership allowed the cashtags feature to tackle a larger number of assets and instruments. The joint deal resulted in an additional button on TradingView that said View on eToro and that connected users to the trading company's website where transactions could be undertaken.

The new license is bound to increase X’s crypto offerings which are already very popular. It is estimated that financial Twitter or Fintwit had an average of 4.7 million cashtag searches per day in 2023 alone.

Musk is most notably an avid supporter of Bitcoin rival Dogecoin and has said in the past that the "memecoin" has a better "total transactional throughput capacity" when compared to Bitcoin. He has remained true to this cryptocurrency even when it slumped in August of 2022.

Musk's companies Tesla and SpaceX continued to accept the struggling cryptocurrency as a payment option for their services despite tumultuous times.

A long history of supporting digital assets

However, Twitter has a long history of supporting cryptocurrencies and other digital assets even before Musk acquired it.

In September of 2021, Twitter announced that it would allow its users to tip in Bitcoin and that it was exploring ways to verify digital assets that use blockchain technology called Non-fungible tokens (NFTs).

There’s no telling what the future holds for cryptocurrencies. They may be a passing fad or have true staying power. However, one thing is for sure, Musk and consequently X will continue to support them by giving them a platform to flourish.

Meanwhile, on Tuesday the U.S. Court of Appeals for the DC Circuit issued a ruling stating that the Securities and Exchange Commission was wrong to thwart crypto investment firm Grayscale from converting its bitcoin trust into an ETF. The news sent Bitcoin prices surging.

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