- Analysts at Mizuho warn that the CLARITY Act could get in the way of X Money’s plans.
- Mizuho cut PayPal’s stock rating to “neutral,” pointing to a growing threat.
- X has rolled out Cashtags, which let users track stocks and crypto inside the app.
Analysts from the Japanese investment bank Mizuho suggest that X Money (the upcoming payments platform from X) has the potential to shake up US payments and go head‑to‑head with PayPal.
However, Mizuho warns that new US crypto regulations, especially the CLARITY Act, could get in the way of X Money’s plans, particularly when it comes to adding crypto features or offering yield products.
The analysts say X Money is meant to be the financial engine of Musk’s “everything app”, combining P2P payments, digital wallets, and commerce with social features.
The model is similar to Chinese super‑apps like WeChat Pay and Alipay.
X has over 400 million monthly users, so Mizuho analysts believe that even low adoption could build a payments ecosystem with serious reach strong enough to take on PayPal at checkout and Venmo for P2P transfers.
As a result, Mizuho cut PayPal’s stock rating to “neutral,” pointing to a growing threat.
A major focus of Mizuho’s analysis is on X Money’s plan to offer up to 6% yearly yield on user balances, a feature that’s caught the eye of both Wall Street and Washington.
The bank called this a particularly sensitive area, noting that the CLARITY Act could block non‑banks from offering yield. It also underscored that regulators are wary of products that resemble unregulated deposits or stablecoins, and that the timing is tricky because the framework is still being finalized.
This places X Money directly in the crosshairs of the same debate currently affecting stablecoins and digital banking alternatives.
Established Fintech Playbook
X Money is not Elon Musk’s first foray into digital finance, since he co-founded X.com back in 1999, which eventually became PayPal.
The platform is expected to offer digital wallets, instant payments, payroll deposits, bank‑like services, and possibly stablecoin or crypto integration down the road.
There are also some indications of partnerships with big payment networks like Visa, putting X Money right inside the existing financial system. However, nothing has been official yet.
Recently, X has rolled out Cashtags, which let users track stocks and crypto inside the app. The feature is now available on iOS in the US and Canada.
Related: Warren Raises Alarm Over Musk’s X Money Launch Amid Oversight Concerns
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