Finance
Elon Musk’s X partners with Visa to offer digital wallet
Elon Musk’s social media platform X on Tuesday announced the launch of a digital wallet and peer-to-peer payments services provided by Visa.
X struck a deal with Visa, the largest U.S. credit card network, to be the first partner for what it is calling the X Money Account, CEO Linda Yaccarino announced in a post on the platform.
She said Visa will enable X users to move funds between traditional bank accounts and their digital wallet and make instant peer-to-peer payments, like with Zelle or Venmo.
It’s the first concrete move from X to create a financial ecosystem for the social media site, which was called Twitter before Musk purchased it in 2022. At the time, Musk said the $44 billion acquisition was a way to create an “everything app.” He later said the platform would enable users to conduct their “entire financial world” on it.
In 2021 while Jack Dorsey was at the helm of Twitter, the company launched a bitcoin tipping feature that allowed users to add their crypto wallet addresses and receive payments in the world’s largest digital token.
But attaining status as a money service business in the U.S. required navigating a far more complex regulatory landscape.
For over a year, Musk has been applying for these licenses for X. According to its website, X Payments LLC is licensed in 41 states and registered with the Financial Crimes Enforcement Network, or FinCEN.
The X Money service is expected to launch in the first quarter, and deals with more financial partners are likely, according to a person with knowledge of the situation.
One of the first use cases for X Money is to allow creators on the site to accept payments and store funds without external institutions, said this person, who spoke on the condition of anonymity to discuss internal matters.
In November 2022, Musk suggested to the platform’s advertisers in a meeting publicly broadcast on Spaces that its coming payments product might ultimately offer certain banking features, such as a high-yield money market account.
Representatives of Visa declined to comment on the matter.
Jeffrey Gundlach speaking at the 2019 SOHN Conference in New York on May 6, 2019.
Adam Jeffery | CNBC
DoubleLine Capital CEO Jeffrey Gundlach said Wednesday he expects only one rate cut for 2025 — two reductions at most — as the Federal Reserve patiently awaits incoming data to assess the state of the labor market and inflation.
“Maximum two cuts this year. And I mean maximum, I’m not predicting two cuts. I just think that’s the most you can possibly think about,” Gundlach said on CNBC’s “Closing Bell.” “At the present moment, if you had made me pick a number, I would say now one cut would be the base case and maximum two.”
The central bank kept interest rates unchanged Wednesday after three consecutive cuts to end 2024. Fed Chair Jerome Powell emphasized that the central bank is in no hurry to adjust its policy stance, particularly as the economy remains strong.
“It’s going to be a slow process to get to a hurdle to cut rates again. … I don’t think you’re going to see a cut at the next Fed meeting,” Gundlach said. “He’s obviously focused on the stability in the unemployment rate right now in terms of not feeling a need to cut rates.”
The notable fixed income investor thinks long-duration Treasury yields have more room to rise. He noted that the benchmark 10-year rate has increased about 85 basis points since the Fed cut rates for the first time last year.
“I think that rates have not peaked on the long end,” he said. “I think rates will have another move up on the long end.”
Gundlach cautioned against owning high-risk assets right now because of his view on long-term interest rates and his observation that valuations are high.
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