X, formerly Twitter, has achieved a significant milestone by obtaining a currency transmitter license in Rhode Island. The Nationwide Multistate Licensing System (NMLS) confirmed this regulatory approval on August 28. This development reflects X's strong intentions to establish a prominent presence in the financial services sector, particularly in the realm of cryptos.
A currency transmitter license is an obligatory regulatory requirement for any company dealing with cryptos or related services. This license enables X to engage in various crypto-related activities, such as storage, transfer, and exchange. This regulatory clearance allows X to expand its service offerings, enhancing its global reach and diversifying revenue streams.
The successful acquisition of the Rhode Island Currency Transmission License signifies X's progress in integrating crypto solutions into its platform. This move aligns with the company's partnership with eToro, announced earlier this year. The license also paves the way for X's extensive user base, consisting of approximately 400 million individuals, to engage in crypto transactions potentially.
In a similar fashion, X recently obtained money transmitter licenses from several states, including New Hampshire, Michigan, and Missouri. These licenses enable X to send, receive, transfer funds, and conduct currency exchange activities. With this licensing strategy, X is positioning itself to provide a comprehensive suite of financial services, aiming to become a versatile platform for users' online needs.
With this latest regulatory approval, X is moving closer to realising Elon Musk's vision of creating an "everything app" encompassing fiat and crypto payments. Although the initial payments feature is expected to support fiat currencies, Musk has reportedly directed X's developers to build a system capable of accommodating crypto functionality in the future.
X's journey into the financial services sector and its strategic alignment with the crypto landscape exemplify its aspiration to remain at the forefront of technological and financial innovation.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash