Elon Musk’s X Enhances DMs with New Encrypted XChat, Audio/Video Calls

Elon Musk is advancing X’s capabilities in private communication, announcing on Sunday, a new direct messaging feature named XChat. The new feature aims to equip X with “Bitcoin-style” encryption, messages that disappear, comprehensive file sharing, and integrated audio and video calling.

The initiative is a clear step in Musk’s ongoing effort to reshape X into an “everything app” by significantly upgrading its private interaction features. Some XChat functionalities are reportedly already live for paid subscribers, with messages secured by a four-digit passcode, according to TechCrunch as noted by Business Insider.

The introduction of XChat is a strategic move to improve user privacy and engagement on the platform. Musk stated on X that the “all new XChat is rolling out with encryption, vanishing messages, and the ability to send any kind of file. Also, audio/video calling.” 

While the specifics of the “(Bitcoin style) encryption,” remain to be fully detailed by the company—X did not immediately respond to Business Insider’s request for clarification—Musk characterized it as a “whole new architecture.” This launch could be key for X as it seeks to innovate and retain its user base, particularly following a reported decline in EU users earlier in the year.

The new feature is intended to be a more robust version of X’s existing DM system, a legacy from the pre-acquisition Twitter era. XChat is also seen as a competitive move against established encrypted messaging platforms like Telegram and Signal, and, in the context of X’s planned X Money payments feature, even fintech apps such as Venmo and Cash App.

Understanding XChat’s Capabilities and Encryption

XChat’s feature set is designed to offer a more secure and versatile messaging experience. The “Bitcoin-style” encryption has sparked considerable discussion, with some in the cryptocurrency community expressing skepticism. For instance, Samson Mow, a notable figure in the crypto space, pointed out that “Bitcoin isn’t encrypted.” 

Bitcoin core developer Luke Dashjr also noted Bitcoin’s lack of encryption and questioned the security implications of using Rust for XChat, though Rust is known for speed and memory safety, suggesting a focus on security, AInvest further detailed. BitMEX Research offered a potential interpretation, suggesting Musk might be referring to BIP-151, a Bitcoin Improvement Proposal concerning the encryption of Bitcoin node data.

Independent app researcher Nima Owji had previously indicated that XChat “will support more advanced group chats and VANISHING MODE!”

The Xchat integration follows X’s initial encrypted messaging feature for paid users from May 2023 and a recent pause in that service on May 29, which may have been to prepare for XChat’s rollout. The current beta is reportedly available to paid subscribers and uses a four-digit passcode for security.

Strategic Vision: The ‘Everything App’ and AI Synergies

The launch of XChat is a significant stride towards Musk’s vision of X as an “everything app”. He previously expressed ambitions for X to become a “fully fledged” dating site and a digital bank in 2024. Secure and private communication is a cornerstone for such a multifaceted platform.

Furthermore, X is developing a payments feature, X Money, anticipated to launch in beta later this year. Musk emphasized the need for caution, stating that “this will be a very limited access beta at first. When people’s saving are involved, extreme care must be taken.”

This new messaging system also aligns with the recent merger of X and Musk’s artificial intelligence company, xAI, in early April. The “whole new architecture” Musk alluded to for XChat could potentially draw on xAI’s technological capabilities.

This AI focus is central to the strategy of the newly formed xAI Holdings Corp., which was reportedly seeking approximately $20 billion in new funding by late April 2025.

XChat enters a competitive field, with established players like Signal and Telegram offering robust messaging services. However, X’s large existing user base—Musk cited 600 million monthly active users in October 2024—provides a significant launchpad.

The platform’s evolution occurs amid ongoing regulatory scrutiny, including an expanded EU Digital Services Act (DSA) investigation into X, and a period where Musk himself reportedly acknowledged financial and user growth challenges, stating in January, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”

The introduction of XChat, with its focus on privacy and expanded functionality, appears to be a strategic effort to enhance X’s appeal and utility as Musk continues to steer the company’s ambitious transformation, a renewed focus after he announced he would step back from work for the Trump administration.