Elon Musk’s X scored an early win with its new messaging app, XChat, within hours of its iPhone launch. The app climbed to the top of the US App Store, overtaking ChatGPT and Claude on the free app chart. The quick rise supports X’s broader plan to fuse messaging, artificial intelligence, and payments under one brand.
Encrypted Messaging Fuels Early Lead
X head of product Nikita Bier shared an App Store screenshot on Saturday, showing XChat in first place, ChatGPT in second, and Claude in third. Bier, who joined X last year to lead consumer growth, previously helped apps like TBH and Gas reach the top of the App Store. The chart position gives XChat strong visibility, though ChatGPT had held the top spot for much of the past year.
XChat is built in Rust and uses what X describes as Bitcoin-style encryption. The app supports end-to-end encrypted chats, voice calls, video calls, and file transfers. It does not require users to register with a phone number, a notable difference from many messaging apps. Group chats currently allow up to 481 members, with X targeting a 1,000-member limit in the coming weeks.
Grok, X’s AI assistant, is integrated into the app. Users can ask it to summarize files and draft messages, adding AI tools directly to the chat experience.
Payments Roadmap Looms
XChat is part of Musk’s wider product stack. In an earlier post, Musk stated X had rolled out encrypted messages, audio and video calls, and file transfers. He added that X Money would launch soon, built with Visa. The first phase of X Money would focus on peer-to-peer fiat transfers, with crypto support planned later. X has secured money transmitter licenses in more than 40 US states, removing one regulatory hurdle.
XChat now enters a crowded market, competing with WhatsApp, Telegram, and Signal. Once payments launch, PayPal and Venmo will also become relevant comparisons. For traders, the link between Cashtags, group chats, and X Money could allow market discussion and payments to sit inside the same ecosystem.
The real test, however, may come when X Money goes live. XChat’s early App Store lead gives it momentum, but holding that position could be harder once launch interest fades.
