Transforming Twitter/X into a Crypto Exchange Super App
By Noah Washington October 23, 2023
- X is evolving into a super app, inspired by China's WeChat, with the plan to provide an array of services including payments, banking and a trading platform
- It is taking steps to integrate cryptocurrencies like dogecoin (DOGE) and bitcoin (BTC) into its payment system, given Musk's endorsements of crypto
- X also obtained financial licenses and may be exploring proposals for an in-app trading platform
In recent times, the tech industry has seen a whirlwind of evolution, with many social media platforms spearheading this transformation. One notable transformation was the acquisition of Twitter by tech mogul Elon Musk, subsequently rebranded to X, with ambitions stretching beyond conventional social networking. Musk envisions a super app akin to China's WeChat, a hub for an array of services with a significant focus on financial offerings.
A recent partnership with eToro, a social investing company, marks a significant stride towards realizing the financial aspects of X. This collaboration introduces an avenue for users to engage in financial markets directly on the platform.
The integration could allow users to view market charts, trade stocks and deal in cryptocurrencies, mirroring a digital brokerage interface. eToro's CEO, Yoni Assia, accentuates the partnership as a bridge connecting the brands and a medium for users to educate themselves about market trends and financial literacy, a step towards a financially inclusive social media ecosystem.
Overcoming Regulatory Hurdles
Twitter/X has taken major steps to integrate cryptocurrency into its platform by obtaining money transmitter licenses in multiple states, including a recent approval in Rhode Island for its payments subsidiary to handle digital assets.
But the road to financial integration wasn't without its hurdles, regulatory compliance being an important one. X has made headway by acquiring money or currency transmitter licenses in several U.S. states, a pivotal step towards legitimizing its financial services.
The noteworthy approval from Rhode Island for Twitter Payments LLC, X's payment processor, to handle digital assets is a leap toward crypto exchange functionality. These licenses, akin to those held by financial stalwarts like Western Union and PayPal, pave the way for X to process payments, with an added crypto flair.
A Crypto Hub?
Elon Musk's ambitious plan to integrate cryptocurrency and social media received a major vote of confidence with Binance's $500 million investment in Musk's acquisition of Twitter/X. The support from Binance CEO Changpeng Zhao signals a strong belief in Musk's vision to blend social networking and Web3 technology, ushering in a new age where social interaction and financial transactions converge seamlessly.
While speculation swirled about a potential X crypto token, Musk moved quickly to dismiss the rumors for now.In a reply to a user's warning about an X token scam, Musk asserted, "and we never will". This statement came as X was seeking proposals from financial data providers to create an in-app trading hub, further fueling rumors about the possible inclusion of cryptocurrencies like dogecoin and bitcoin.
X's Crypto Integration
The blend of social networking with financial services on X could very well be a precursor to a new genre of super apps, steering the digital populace towards a more integrated and financially inclusive social media realm.
Elon Musk's rebranding of Twitter to X signals ambitions beyond conventional social media, toward a multifaceted platform integrating cryptocurrencies and payments. Musk's previous crypto affiliations with dogecoin and bitcoin fuel speculation he may incorporate them into X's payment system.
While initially focused on fiat currencies, X is actively pursuing financial licenses and a trading platform, suggesting crypto could come later. The potential to seamlessly use DOGE or BTC on X, given Musk's vocal support of both, generates particular intrigue about the platform's crypto future despite Musk downplaying this for now.
Ultimately, X appears positioned to transcend current social networking norms by blending in blockchain innovations Musk previously embraced.