Musk’s X Platform to Launch Investment and Trading Services

With advertising revenue still below pre-acquisition levels, Elon Musk’s X platform is gearing up for a bold move—integrating users’ “entire financial lives” into the social media platform.

 

On Thursday, the Financial Times reported that Musk’s X platform will roll out a “super app” offering investment and trading services, while also exploring the introduction of X-branded credit or debit cards.

 

X Money Takes the Lead: Digital Wallet Paves Way for Financial Ecosystem

As the first step in its financial services strategy, X has announced the launch of X Money—a digital wallet and peer-to-peer payment service, with Visa as its initial partner.

 

However, venturing into financial services will expose X to significant regulatory hurdles, including licensing requirements and anti-money laundering compliance. For a platform still striving to regain financial stability, this adds considerable pressure.

 

Since Musk acquired the platform—then called Twitter—for $44 billion, advertisers have fled in droves, with ad revenue accounting for the bulk of its income.

 

Many advertisers are wary of Musk’s relaxed approach to content moderation, fearing their ads may appear alongside inappropriate content, and are unsettled by the billionaire’s controversial statements on the platform.

The Truth Behind Advertiser Returns: Threats or Incentives?

Tensions between X and advertisers persist. In the interview, Yaccarino dismissed claims that X recently threatened brands with lawsuits unless they purchased ads on the platform.

 

She called a Wall Street Journal report from last week “hearsay,” which alleged that six brands, including Verizon and Ralph Lauren, signed ad deals after receiving threats. “These are unnamed sources and random third-party commentators,” Yaccarino said.

 

Yaccarino claimed: 96% of advertisers from before the acquisition have returned to the platform, and the company is “very close” to restoring 2022 ad revenue levels.

 

Research firm Emarketer forecasts X’s revenue will rise to $2.3 billion this year, up from $1.9 billion last year, but well below the $4.1 billion in global sales when Musk took over in 2022.

 

X’s cross-industry expansion from social media to financial services is an unprecedented commercial experiment. With ad revenue yet to fully recover, this aggressive pivot could either be a game-changer or a risky overreach.