X's CEO Linda Yaccarino announced that users will soon be able to trade and invest directly on the platform, signaling a significant step in the plan to transform the former Twitter into Elon Musk's 'everything app.'

Speaking at the Cannes Lions advertising festival, Yaccarino outlined a strategy to boost financial services including digital payments, trading tools, and possibly branded credit or debit cards.

She shared with the Financial Times that: 'You can come to X and conduct your entire financial transaction on this platform.'

‘Whether I can pay for the pizza we had dinner with last night or make an investment or trade, that is still the future.’

X Enables Transactions And Investments With Visa Partnership

The focus of this expansion is X Money, a digital wallet and peer-to-peer payment service set to launch later this year through a partnership with Visa.

Initially rolled out in the United States, this service is expected to support rewarding creators, purchasing goods, and storing value.

However, the shift to finance could lead to regulatory scrutiny. X may face challenges related to licensing, anti-money laundering compliance, and oversight of activities in the financial market.

The company is also navigating a complex advertising environment. Following Musk's $44 billion acquisition in 2022, many advertisers have pulled back due to concerns over censorship and content safety.

While Yaccarino claims that 96% of previous advertising clients have returned, skepticism in the industry remains.

Yaccarino dismissed a Wall Street Journal report that X threatened brands to advertise as 'rumor,' citing anonymous sources.

According to reports, some major brands, including Verizon and Ralph Lauren, are said to have agreed to advertising contracts after facing pressure. 'Those are anonymous sources, random third-party commentators,' she said.

X is currently involved in a federal antitrust lawsuit against the Global Alliance for Responsible Media and other companies in the advertising industry.

The company alleges that this group coordinated a boycott claiming to promote online safety.

Some brands have been excluded from the lawsuit, including Unilever, which continued to advertise in October.

Research from eMarketer predicts X's revenue will rise to $2.3 billion this year, although it remains well below the $4.1 billion recorded in 2022.

Elon Musk Sells X To xAI

In March, Elon Musk sold the social media platform X to his AI company, xAI, in an all-stock deal that valued xAI at $80 billion and X at $33 billion, including $12 billion in debt.

The timing of this announcement comes after a U.S. judge dismissed Musk's motion to dismiss a class action lawsuit alleging he defrauded shareholders during the initial acquisition of Twitter.

The acquisition has faced considerable criticism, with observers like Adam Cochran of Cinneamhain Ventures warning that the move increases legal risks for xAI and raises questions about the structure of the deal.

Cochran claimed Musk overvalued xAI to absorb X while transferring liabilities and potential user data to the AI company, calling the valuation 'incredibly ridiculous.'