X has officially launched X Money, its integrated payments and neobanking service, offering US Premium+ subscribers up to $10 million in FDIC insurance coverage on their deposits through the X Cash Sweep Program.
For context, the standard FDIC insurance limit is $250,000 per depositor, per institution. X is offering 40 times that.
How X Money actually works
X Payments itself is not an FDIC-insured entity. The deposits are managed through partner banks, with Cross River Bank serving as the key banking partner in the arrangement.
This is the same sweep deposit model used by brokerages like Fidelity and platforms like Wealthfront. Your money gets distributed across multiple partner banks, each covering up to the $250K FDIC limit, which is how the total insured amount stacks up to $10 million.
