X in Talks to Pay Creator Royalties with Stablecoins

X Explores Stablecoin Payments for Content Creators Amid Program Overhaul

X, formerly known as Twitter, is reportedly in discussions to integrate stablecoin payments for its content creators, a move that could see Circle’s USD Coin (USDC) play a significant role in creator payouts as the platform revamps its monetization strategy.

The social media giant is exploring the use of stablecoins, such as USDC, to disburse royalties to influential users for their content, according to a report by CoinDesk on August 20. These conversations are ongoing, with a source familiar with the plans indicating that X is not alone in considering such a shift, as other social media platforms are also experimenting with stablecoins for influencer commissions.

This development coincides with X’s significant changes to its creator monetization programs. Earlier this month, the company announced the discontinuation of new enrollments for its long-standing Revenue Sharing program, replacing it with the new Original Content Rewards Program.

Under the revamped system, eligible creators will earn revenue based on qualified impressions generated by their original content. These impressions must originate from Premium users viewing content on their Home Timeline, with at least half of the post visible. Creators are required to have a minimum of 500 verified followers and have accumulated 500,000 Home Timeline impressions from verified users within the preceding 90 days. Additionally, they must subscribe to X Premium, Premium+, or Premium Business and maintain their account in good standing.

Existing participants in the Revenue Sharing program will continue to earn through September 7. X plans to open applications for the Original Content Rewards Program to these users starting September 8, with their first payments under the new scheme anticipated on September 25. The ongoing discussions around stablecoins could therefore influence the delivery method of these future creator payments.

Stablecoins, which collectively boast a market value exceeding $300 billion, are increasingly utilized by businesses for faster and more cost-effective cross-border transactions compared to traditional banking systems.

X’s interest in these fiat-pegged digital assets for creator compensation aligns with Elon Musk’s broader financial ambitions for the platform. In March, Musk confirmed that X Money, the platform’s in-house payment product, was slated for early public access within weeks, signaling a step towards his vision of an “everything app” that integrates financial services into social media.

The X Money product was initially launched to a select group of US Premium+ users in June, before expanding to a wider audience of paid subscribers by late July. Currently, it functions as a dollar-based wallet, enabling eligible users to hold balances, conduct free instant transfers to other X Money users, receive direct deposits, and make purchases using a Visa debit card. The service also offers up to a 6% annual yield on balances and cashback on purchases.

Notably, X Money does not yet support cryptocurrency or stablecoins, despite significant speculation prior to its launch. However, some of Musk’s other ventures have previously embraced stablecoin technology. SpaceX, for instance, has reportedly been using stablecoins to process cross-border payments from Starlink customers in emerging markets, a precedent that may shed light on X’s current interest in the technology.