Utah Approves X’s Move Into Money Transfer Services

Summary

  • Utah license enables company to offer money transfer services like Venmo (a PayPal offering).

  • Initiatives like this could diversify the brand from digital advertising.

  • The move follows a downturn with promotions following Musk’s public handling of controversial subjects.

  • Under Musk’s leadership, the company seems to be transitioning to an “everything app” somewhat akin to the Chinese app WeChat.

  • The company already obtained its inaugural state money-transmitter license in New Hampshire in June of the previous year, with PA, AZ, GA, MD and MI following suit.

Utah Approves Money Transfer Service License

The state of Utah authorized this service on Friday, per an announcement in the Nationwide Multistate Licensing System & Registry, an electronic catalog.

Service Similarities to Venmo

This permits the company a similar function to PayPal’s Venmo (NASDAQ:), enabling money transfers and providing the opportunity for users to transmit funds to each other.

Opportunities beyond Digital Advertising

Moving into the payment sphere could provide the company avenues to expand its base apart from digital advertising, which has experienced issues since Musk’s takeover.

Advertisers’ Reaction to Musk’s Controversial Comments

Some significant advertisers have halted or moved their expenditure away due to Musk’s agreement last year with a user who supported an antisemitic conspiracy theory. His charged remark concerning brands that paused their ads on the platform, uttered at a New York Times DealBook conference that year, wasn’t appreciated either.

The “Everything App” Vision

Since purchasing Twitter in October 2022, Musk expressed a vision of repositioning the company as a provider of an “everything app” mirroring the multi-function Chinese app, WeChat.

Other States’ Licenses

Prior to this, the company secured its first state money-transmitter license in New Hampshire in June the year before and managed to obtain clearance from Pennsylvania, Arizona, Georgia, Maryland, and Michigan.

These developments could substantially impact the currency and trading domain, potentially infusing more liquidity into the markets and providing new opportunities for diverse asset classes.

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