X Launches XChat with Improved Cryptography for Secure Messaging
Elon Musk has announced the launch of XChat, a new direct messaging feature on X, strictly for paid subscribers.
XChat will offer end-to-end encryption, disappearing messages, file sharing, and audio/video calls without a phone number. It will also include group messaging with a four-digit passcode for increased security.
The new messaging platform is built on Rust for a secure and efficient framework.
Musk described it as a “whole new architecture” focused on privacy. There has been no set timeline for a public rollout at the moment.
The announcement came after X temporarily suspended encrypted DMs on May 28, 2025, which is likely due to the purported launch of XChat. This is part of Musk’s objective to increase the capabilities of X, in line with recent developments like X Money.
The launch of XChat targets premium subscribers, and over 600 million monthly active users of X could benefit from its eventual full rollout.
Unpacking “Bitcoin-Style Cryptography” Claims
Musk’s reference to “Bitcoin-style encryption” has attracted criticism due to its technical vagueness.
Bitcoin employs elliptic curve cryptography (ECC), using the secp256k1 curve for key generation and digital signatures, not data encryption. Bitcoin Core developer Luke Dashjr commented on X that “Bitcoin doesn’t use encryption,” with Musk likely referring to ECC-based cryptography for XChat’s key exchange or message security.
Computer science professor Ian Miers also agreed with Dashjar, noting the term’s inaccuracy.
XChat’s end-to-end encryption likely relies on ECC, a standard for secure messaging, to ensure only senders and recipients access messages. However, X has not disclosed technical specifications or independent audits, leaving the implementation unverified.
This lack of transparency has led to calls for open-source code to validate security claims.
Community Calls for Transparency in XChat Encryption
Dashjr and Miers have called for clarity on XChat’s cryptographic framework, exposing their skepticism within the crypto sector. While the community reactions remain enthusiastic due to the increased privacy, they remain vocal about the need for greater transparency.
The future of XChat’s security poses long-term weaknesses, such as quantum computing’s potential to compromise ECC in the future, though this risk is not immediate.
To address these issues, X will need to adopt advanced cryptographic methods to maintain long-term security.
XChat’s performance can potentially make X a secure communications platform, but its success relies on addressing technical critiques and providing verified encryption standards.
X Money: Musk’s Next Step Toward an All-in-One App
X Money, a payment system scheduled for a 2025 launch, is X’s entry into financial services. A recent post by Elon Musk on X confirms that the company is still working on the payment system, with plans to roll out its beta version before the year ends.
The payment system is designed to expand X’s vision as an “everything app,” allowing peer-to-peer transactions, fund storage, and a digital wallet.
On Jan. 28, 2025, X reached a partnership agreement with Visa to enable instant transfers through Visa Direct.
X Payments LLC has secured money transmitter licenses in 41 U.S. states, but there are still regulatory concerns in New York, as lawmakers question privacy protections surrounding Elon Musk’s access to user data, Senator Elizabeth Warren said.
In Musk’s post, he stated the need for a cautious rollout due to strict financial security requirements. There have been speculations surrounding the payment system about cryptocurrency integration, due to Musk’s past support for Bitcoin and Dogecoin, which remain unconfirmed.
Alex Finn, a crypto and finance analyst, suggests on X that cryptocurrency, possibly stablecoins like USDC, could serve as a payment option for efficient transactions.
