Key facts
- Wise's application for a national trust bank license in the US was denied by the OCC.
- The denial impacts Wise's expansion plans in its largest growth market.
- Wise plans to submit a new application for a national trust bank charter under the GENIUS Act framework.
- The company stated the denial would not affect its existing US business.
- Wise has strengthened its safety processes and compliance measures.
London-listed shares of Wise fell 10% after the money transfer group announced its application to create a national trust bank in the United States was denied by regulators. The U.S. Office of the Comptroller of the Currency (OCC) rejected the application, stating it was incompatible with the Federal Reserve's new policies for payment system access. Wise sought to settle U.S. dollar payments directly with the Fed. The company noted that U.S. regulations for payments have changed significantly since the application was submitted in June of last year, making the original approach non-viable. Wise plans to submit a new application for a national trust bank charter under the GENIUS Act framework, which pertains to digital assets like stablecoins, and stated its infrastructure is well-positioned to interoperate with digital assets. The regulator also flagged a U.S. consent order from last year on compliance violations, following which Wise has strengthened its safety processes. The denial impacts Wise's expansion plans in its largest growth market, though the company stated it would not affect its existing US business. A national banking license would allow Wise to operate under a single federal regulator in the US, simplifying its expansion of products and services.