The social media platform X (formerly Twitter), owned by Elon Musk, has taken another step towards offering its users financial services, including cryptocurrency payments. The platform has just obtained a local license in the United States, issued by a regulator in Rhode Island.

Formerly Twitter, X Moves Closer to Offering Crypto Payments

According to Nationwide Multi-State Licensing System (NMLS) data, the license was granted this week, on 28 August 2023. Rhode Island, a state in the northeastern part of the US, issued an authorization called the Currency Transmitter License, which concerns the transfer and receipt of financial funds. This applies to fiat currencies (dollars, euros, etc.) and to cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term (Bitcoin, Ethereum, etc.).

With this latest approval, the former Twitter can now provide transfer, custody, and exchange services for digital assets through its platform. This brings Elon Musk's plan to make X an 'everything app' closer to realization and the general trend among social media giants increasingly interested in the world of payments.

This is not the first license of this type for X in the United States. In July, the states of Michigan, Missouri, and New Hampshire approved separate authorizations, and the platform can now offer payment services in seven administrative regions in the US.

Although it is not yet known when or in what form X will implement payment services, some sources familiar with the matter suggest that these are expected to resemble services offered by PayPal. It's worth noting that Musk was one of the co-founders of the payment giant.

A few months ago, X took another step towards offering more financial services for its customers. Integrating with the social trading platform, eToro, allowed users to buy and sell stocks and other assets using a $Cashtag symbol.

X Aims to Create a Trading Hub

Earlier this month,Finance Magnates reported that, according to a media publication by Semafor, X is looking for a partner in the area of financial data to create its own fully independent trading hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term within its platform.

Consequently, there is speculation that the social media giant, now under Elon Musk's ownership, is actively looking for major corporations to supply financial information, live stock market data, and other related services. As part of their proposal, the company is said to have inquired about the financial commitment potential partners could make in the venture.

Moreover, the platform is drawing in prospective partners by highlighting its reach to 'hundreds of millions of qualified users'. It's worth noting that Musk purchased Twitter for a staggering $44 billion last year and subsequently privatized the company.