X, the Former Twitter, Has Licenses in Multiple U.S. States to Process Payments Including Crypto

Elon Musk's social media platform, X (formerly Twitter), has obtained money or currency transmitter licenses in seven U.S. states – most recently from Rhode Island.
Although the Rhode Island license does allow for processing crypto payments, it also applies to broader payments providers like PayPal or Venmo.

X, the Elon Musk-owned social media platform formerly called Twitter, has obtained payments licenses from several U.S. states in recent months – including a currency transmitter license in Rhode Island earlier this week.

While Musk has hinted at supporting crypto on the platform – even briefly switching out Twitter's bird logo to dogecoin's dog before its rebranding to X last month – the licenses allow for broader payments services to be offered.

Musk has said that he plans for X to expand beyond social media posts, becoming an 'everything app,' and the money transmitter licenses obtained since June from Arizona, Maryland, Georgia, Michigan, Missouri and New Hampshire indicate the tech billionaire may have plans to support payment processing nationwide similar to Venmo or PayPal, a company he co-founded. The Rhode Island license, while essential for permitting payments, is also a requirement for offering crypto services.

"I think a new social media company is needed that is based on a blockchain and includes payments," Musk said in a text message just days before the bombshell offer to buy Twitter for $43 billion back in April 2022.

In an FAQ answering common queries Rhode Island's Department of Business Regulation (DBR) specifies that firms requiring the approval "include those transmitting money for its customers, including traditional wire transfers (like Western Union) and electronic transfers (like PayPal)."

The state's currency transmission license is also required for conducting crypto exchange and custody business, with an exception for fintechs in "very rare cases" where the firm "is registered as a true 'agent' of the Rhode Island licensed currency transmitter ... and money transmission is not the core profit-making business of the fintech."

Though they certainly open the way for offering crypto payments, the state licenses are not limited or unique to that service. In New Hampshire, "'money transmission' means engaging in the business of selling or issuing payment instruments or stored value, or receiving currency or monetary value for transmission to another location." The state also says "an administrator or exchanger that accepts and transmits a convertible virtual currency or buys or sells convertible virtual currency for any reason is a money transmitter under federal regulations ..."

Western Union and PayPal have the same state licenses as X, and additional ones in line with the services they offer and the states they serve.

Edited by Sheldon Reback.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Consensus

01

14

51

45

Elon Musk's X Has Licenses in Multiple U.S. States to Process Payments, Including Crypto

Musk's social media platform, X, formerly Twitter, has obtained money or currency transmitter licenses in seven U.S. states including Maryland, New Hampshire and Rhode Island.

10 Years of Decentralizing the Future