X Money To Offer FDIC Coverage Up To $10M

X Money Raises the Bar on Cash Protection

X Money (@XMoney) is set to expand deposit protection for its US users, with plans to introduce a Cash Sweep Program offering up to $10 million in FDIC insurance coverage, according to DogeDesigner. The move would mark a significant step up from the platform's current beta setup, which provides standard FDIC coverage of $250,000 through its banking partner Cross River Bank.

The Cash Sweep Program works by automatically distributing user deposits across a network of FDIC-insured banks, with each institution covering up to $250,000 per depositor. That structure allows the total protected amount to scale well beyond the standard single-bank limit. Cross River Bank, a New Jersey-chartered, FDIC-insured institution, serves as the backend banking infrastructure for X Money's current deposits.

6% APY Puts X Money Well Ahead of Traditional Banks

Alongside the expanded insurance, X Money users will be able to earn up to 6% APY on their cash holdings. Based on beta tester reports, there appear to be no balance caps on the 6% APY and no activity requirements such as direct deposit. At 6%, the rate sits well above what most traditional banks and high-yield savings accounts currently offer. For context, the best high-yield savings accounts available today generally top out around 4% APY.

X Money is not a bank and does not hold its own FDIC charter. Customer deposits are routed through Cross River Bank. Open questions remain around user protections, including account access in the event of a suspension and data security standards. Some users have also raised concerns about what happens to their wallet if their X account is banned or suspended, a question X has not publicly addressed. No official launch date for the Cash Sweep Program has been announced.

Sources:
Yahoo Finance: What to Know About X Money
The Motley Fool: Is X Money's 6% APY Too Good to Be True?