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Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. X Money Beta Rolls Out: X Corp. has launched the beta of X Money as part of Elon Musk’s “everything app” vision. For now, the service is fiat-only with no crypto support.

2. Kraken Secures Fed Access: Kraken gained a Federal Reserve master account through the Federal Reserve Bank of Kansas City, marking a first for a crypto-focused institution.

3. Tether Invests in Sleep Tech: Tether invested $50M in smart-sleep startup Eight Sleep, valuing the firm at $1.5B. Its Pod smart bed tracks biometrics like heart rate and sleep cycles to improve rest.

4. 💡Feature of the Day - South Korea Crypto Leak: National Tax Service of South Korea accidentally exposed seed phrases of seized crypto wallets during a press event. Attackers quickly drained about $4.8M after the recovery phrases appeared in a public photo.

   
   All this and more in today’s headlines!

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📰 News Highlights:

X Money Beta Launches [Source][Source][Source][Source]

Elon Musk’s push to transform X into an “everything app” is taking shape as the X Money beta rolls out to select users. Early screenshots reveal a fintech product offering a striking 6% APY on deposits, far higher than most traditional high-yield savings accounts.

Legendary actor William Shatner is among the first external testers, even auctioning off beta invites for charity. Funds are held through Cross River Bank, providing FDIC insurance coverage up to $250,000 for added consumer confidence.

The platform aims to blend social media, payments, and AI tools like Grok into one financial ecosystem. Users can send peer-to-peer payments directly within the app and use a sleek metal Visa debit card featuring their X handle.

Despite speculation from the crypto community, the current beta is strictly fiat-focused with no integration of cryptocurrencies like Dogecoin. However, with money-transmitter licenses secured across more than 40 states, X appears to be laying the groundwork for a much broader financial rollout.

Kraken Gains Fed Access [Source][Source][Source]

Crypto exchange Kraken has secured a historic Federal Reserve master account through the Federal Reserve Bank of Kansas City, marking the first time a crypto-focused institution has gained direct access to the U.S. central banking system.

The approval allows Kraken Financial to connect directly to Fedwire, the high-speed payment rail used by major banks, enabling faster and more efficient transfers between traditional money and digital assets. For years, crypto firms relied on intermediary banks that often imposed high fees or sudden service restrictions.

However, Kraken’s account is a Tier 3 limited-purpose master account, meaning it cannot earn interest on reserves held with the Federal Reserve. This “skinny” version grants payment access while limiting certain banking privileges.

Even so, the move is considered a major validation of Wyoming’s Special Purpose Depository Institution (SPDI) framework for crypto banks. The decision could pave the way for other Wyoming-chartered firms like Custodia Bank to pursue similar federal access, signaling a shift toward regulated integration of crypto into the U.S. financial system.

Tether Backs Sleep Tech [Source][Source][Source]

Stablecoin issuer Tether is expanding beyond crypto with a $50 million investment in smart-sleep company Eight Sleep. The funding values the firm at $1.5 billion and reflects rising interest in AI-driven health optimization.

Eight Sleep’s flagship “Pod” smart bed analyzes biometric data like heart rate and sleep cycles, adjusting environmental factors such as temperature and sound to improve sleep quality.

The partnership will also integrate Tether’s QVAC architecture, a privacy-focused platform designed to process health data directly on a user’s device. This edge-AI approach ensures sensitive biometric information remains local rather than stored on centralized servers.

The investment signals Tether’s broader strategy of diversifying its reserves into sectors like AI, media, commodities, and now biotechnology and longevity research, positioning the company as more than just the issuer of Tether.

💡 Feature of the Day: 

Korean Crypto Leak [Source][Source][Source]

South Korea’s National Tax Service accidentally exposed the seed phrases of seized crypto wallets during a press event, leading to a $4.8 million theft. Officials had shared a high-resolution photo of confiscated assets to showcase enforcement efforts against tax evaders.

Unfortunately, the image clearly displayed the recovery phrases of at least two hardware wallets. Within minutes of the photo going public, attackers drained the funds.

The incident has sparked a major government investigation and renewed debate over the state’s ability to manage digital assets securely. Koo Yun-cheol confirmed that the Financial Services Commission will lead a probe into the breach.

Authorities are attempting to track the stolen funds on the blockchain, though recovery remains difficult due to the pseudonymous nature of crypto transactions. The NTS has promised an external security review and updated procedures for handling seized digital assets.

😂 Crypto Meme of the Day: 

Meme of the day provided by @Odd-Radio-8500

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com