July 24 : London-listed shares of Wise fell 10 per cent on Friday after the money transfer group said its application to create a national trust bank in the United States was denied by regulators, amid major changes in financial policy.
The U.S. Office of the Comptroller of the Currency denied Wise’s application as it was incompatible with the Federal Reserve’s new policies for payment system access, the dual-listed company said. As a national trust bank, Wise sought to settle U.S. dollar payments directly with the Fed.
U.S. regulations for payments have changed significantly since the firm submitted its application in June of last year, it said.
“With the Federal Reserve generally pausing account access for an uninsured trust bank, the approach in our application became non-viable,” the firm said.
The fintech firm plans to submit a new application for a national trust bank charter under the GENIUS Act framework, which pertains to digital assets like stablecoins.
Wise said its infrastructure is well positioned to interoperate with digital assets alongside existing payment rails.
The company said the regulator flagged a U.S. consent order from last year on compliance violations following which Wise has strengthened its safety processes.
