Twitter-X, the rebranded social media platform formerly known as Twitter, has secured the Rhode Island Currency Transmitter License, a crucial regulatory approval that paves the way for the company to offer cryptocurrency payments and trading services in the United States.
Social media giant expands into crypto services with new license
The license, granted on August 28, according to data displayed on the Nationwide Multistate Licensing System (NMLS), allows Twitter-X to provide a range of virtual asset-related services. These services include the storage, transfer, and exchange of digital assets on behalf of its extensive user base.
The Rhode Island license is particularly significant because it enables the holder to maintain control of virtual currency transactions for others, encompassing a variety of crypto-related service providers such as exchanges, wallets, and payment processors.
Elon Musk’s vision for Twitter-X as an ‘everything app’ takes shape
Since Elon Musk took the helm, Twitter-X has been undergoing significant transformations. Musk has expressed his ambition to turn the platform into an “everything app,” and the acquisition of this license is a significant step toward that goal. Prior to this, Twitter-X had already made strides in the crypto space by adding a Bitcoin tips feature and enabling users to set NFTs (Non-Fungible Tokens) as profile pictures. The platform has also partnered with Strike, a Bitcoin payment app, to facilitate the sending and receiving Bitcoin tips.
The Rhode Island license is not just a regulatory formality; it is a strategic move that aligns with Twitter-X’s broader vision under Elon Musk’s leadership. The license may also serve as a precedent for other social media platforms contemplating entry into the crypto space, given the regulatory scrutiny that often accompanies such ventures.
Twitter-X’s foray into cryptocurrency services comes at a time when the industry is experiencing exponential growth despite regulatory uncertainties. The license allows the platform to diversify its offerings and potentially attract a new user base interested in digital assets. As Twitter-X continues to evolve under Musk’s vision, the integration of cryptocurrency services could become a cornerstone in transforming the platform into a multifaceted application, thereby setting a new standard for social media platforms in the digital age.