X Payments Secures Licenses, Aims to Phase Out Fiat Withdrawals, Leaving Impact on Dogecoin Uncertain

X Payments LLC has obtained Money Transmitter Licenses in 25 US states, enabling it to facilitate fiat and cryptocurrency transactions. The licenses aim to eliminate the necessity for withdrawals and integrate crypto payments. Despite the positive development, Dogecoin remains bearish, with no indication of integration into X Payments or any set timeline from Elon Musk.

X Payments Secures Money Transmitter Licenses, Aims to Eliminate Fiat Withdrawals

X Payments LLC, a subsidiary of the microblogging platform X, formerly Twitter, has obtained Money Transmitter Licenses (MTLs) in 25 states across the United States. This significant development marks a strategic move towards integrating cryptocurrency payments into the platform, enabling users to seamlessly transact in both fiat and digital assets.

Licensing Expansion and Strategic Vision

A Money Transmitter License authorizes a company to facilitate money transfers within a state, subject to regulatory oversight by financial authorities. By acquiring MTLs in various jurisdictions, including Arizona, Illinois, and Georgia, X Payments strengthens its regulatory compliance and expands its operational reach.

X Payments' Chief Information Security Officer, Christopher Stanley, emphasized the company's vision of self-sufficiency in financial services. He asserted that users should have access to a comprehensive suite of financial services within the platform, eliminating the need for external withdrawals.

"This will allow people to basically use X as a wallet," explained crypto influencer Alex Finn. "They can save and send money/crypto on here."

Elon Musk's Acquisition and Dogecoin's Impact

The acquisition of Twitter by Elon Musk, who is closely associated with X Payments, was met with anticipation by the Dogecoin community. Dogecoin creator Billy Markus noted a positive change in his experience with the platform after the second anniversary of Musk's ownership.

Despite this optimism, Dogecoin's price action has remained subdued. Musk has yet to provide a timeline for the meme coin's integration into X.

Bearish Momentum in Dogecoin

X Payments' foray into crypto exchange services within its platform represents a bullish development for Dogecoin, Musk's preferred digital asset. However, the meme coin has not experienced the same surge in value as it did in March 2024.

When X secured licenses in Illinois, New Mexico, and Oregon last month, Dogecoin saw a modest uptick. However, technical factors may be influencing the current market sentiment.

According to data from Santiment, while the number of non-empty Bitcoin wallets continues to grow, activity around Dogecoin has plateaued. This stagnation follows previous surges, indicating a cooling-off period.

At the time of writing, Dogecoin is ranked as the 9th largest cryptocurrency by market capitalization. Data from CoinGecko reveals that the meme coin has lost 30% of its value in the last month, with weakness persisting on the daily and weekly charts.

Despite the downturn, only 16% of Dogecoin holders are currently at a loss, while 80% remain in profit.

Decoupling of Dogecoin and X Payments' Licenses

While the acquisition of MTLs across multiple states by X Payments LLC could be seen as a positive for Dogecoin, recent price action demonstrates that licensing and platform enhancements alone may not directly impact its value.

The bearish trend in Dogecoin is largely driven by market sentiments and on-chain and exchange signals. This shift suggests that the Dogecoin market may be maturing and becoming less susceptible to speculative price fluctuations.

Conclusion

X Payments' expansion of Money Transmitter Licenses marks a significant step towards integrating cryptocurrency payments into its platform. However, the impact on Dogecoin's price remains uncertain, as market forces and technical indicators play a larger role in shaping its value. This development may also indicate a shift in the Dogecoin market, suggesting a greater focus on fundamentals and less volatility in the future.