Musk's X Money Launches Without Crypto: 6% APY, Powered by Cross River

X Money, the financial product launched by Elon Musk's X on July 28, offers a 6% annual percentage yield (APY) on deposits, but it has no cryptocurrency component.

The service is available only to US-based Premium and Premium+ subscribers who are adult residents with a US phone number. To earn the top rate, customers must deposit at least $1,000 and hold X Premium, which starts at $8 per month.

X Money allows users to hold deposits, send peer-to-peer payments in real-time, receive direct deposits up to two days early, and supports wire transfers, checks, and free ATM withdrawals. The product is powered by Cross River Bank, a New Jersey-based lender that also supports other fintech platforms.

Cross River has faced regulatory scrutiny, with an FDIC enforcement action in 2023 for what regulators called 'unsafe and unsound practices related to fair lending,' as well as a prior enforcement action in 2018 for unfair and deceptive practices. The Federal Reserve's benchmark rate sits at 3.50% to 3.75%, making the 6% APY offered by X Money approximately 150 basis points above the market's best competing offer.