As part of the effort to transform itself into an “everything app”, X (formerly Twitter) obtained a U.S. Currency Transmitter License on Monday that will allow users of the microblogging platform to perform cryptocurrency payments, starting with the United States.
The Elon Musk-owned company has been conducting business as a money transmitter in the country for years, making fiat payments to creators on the platform, but has yet to support crypto settlements.
Currency Transmitter License Paves Path For Twitter To Provide Crypto-Related Services
According to data released by the Nationwide Multistate Licensing System and Registry (NMLS) on August 28, Rhode Island approved a currency transmitter license request by Twitter Payments LLC – the payments branch of X.
The license required by crypto service providers, including exchanges, wallets, and payment processors, will enable X to store, transfer, and exchange Bitcoin (BTC) and other cryptocurrencies on the users’ behalf.
Apart from now being a crypto payments platform, the San Fransisco-based social media company also has an existing Money Transmitter License – a permit that allows businesses to legally transmit money or monetary instruments such as checks, drafts, and wire transfers – in Arizona, Georgia, Maryland, Michigan, Missouri, and New Hampshire.
Musk Dreams Of Turning Twitter Into An “Everything App” That Will Be An Online Financial Transaction Hub
The latest development goes in line with Musk’s aspirations to turn Twitter into an “everything app”. Last month, the multi-billionaire shared that the company will add “comprehensive communications” to protect the freedom of speech on its platform and introduce services that will give users the ability to conduct entire financial transactions.
Since last October, when the Tesla and SpaceX CEO took over Twitter (Now X), there have been rumors circulating that the company may provide cryptocurrency-related services to its 450 million users worldwide.
Some even suggested that Elon Musk might release an ‘X’ token to incentivize creators, a rumor that has since been denied by the tech billionaire and confirmed to not be in the company’s plans.
The crypto-centric billionaire has been known to promote crypto assets and blockchain technology and is also lovingly called the “Doge Father” because of his affection for Dogecoin (DOGE).
In the past, Musk has promoted DOGE several times on Twitter, which has resulted in the meme token’s prices skyrocketing. Virtual currency has been accepted as a form of payment for merchandise on the Tesla website since 2021.
Tesla and SpaceX Holds Bitcoin in Company Reserves
Interestingly, both Tesla and SpaceX reportedly held Bitcoin (BTC) worth upwards of $1 billion. However, both companies have written down the value of BTC in their balance sheet after selling large quantities of digital currency to raise capital in 2021 and 2022.
Currently, the EV manufacturing giant holds $184 million worth of Bitcoin after selling 75% of its holding, while the astronautics company has sold off $375 million worth of the asset.
Twitter’s Past Adventures In The Crypto World
Twitter is no alien to incorporating crypto technology. In 2021, under the helm of co-founder and former CEO Jack Dorsey, who himself is an avid supporter of Bitcoin and cryptocurrencies, the platform integrated Lightning Network – the layer-2 scaling solution for Bitcoin, making it possible for users to receive tips in BTC.
A year later, the company allowed Twitter Blue subscribers – its paid subscription service – to verify ownership of their NFTs using their Twitter profile.
At the time of writing, Bitcoin (BTC) was trading at $27,454 – up 5.4% in the last 24 hours, while Dogecoin (DOGE) was trading at $0.0657 – rising 3.9% in the same period.