Wise Shares Fall 7.5% After US Regulator Denies Bank Charter Application

Shares of Wise PLC (LON:WISEa) fell sharply after U.S. regulators denied the company's application for a national trust bank charter, a significant setback in its effort to reduce costs in the American market. The financial technology company's stock dropped 7.5% in after-hours trading on Thursday following the announcement.

Regulatory Setback

The U.S. Office of the Comptroller of the Currency (OCC) cited two main factors for its denial of the application, which Wise originally submitted in June 2025. The regulator pointed to the Federal Reserve’s ongoing pause on issuing new Tier 3 master accounts and existing consent orders against Wise from multiple states.

The decision extends the timeline for Wise to establish a direct connection to the U.S. payments system. Gaining this charter would have allowed the company to lower its transaction costs and, in turn, its pricing for customers, similar to arrangements it holds in other countries.

Impact on US Strategy

Wise stated the denial does not affect its normal operations in the United States, where it continues to serve customers under its existing money transmitter licenses across 48 states and four territories. The company has been working to enhance its compliance programs since being subject to a Multi-State Consent Order in July 2025.

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Despite the setback, Wise affirmed its goal of connecting directly to the Federal Reserve’s payment networks, such as FedNow and Fedwire. The company plans to submit a new application for a national trust bank charter under the GENIUS Act framework, which it views as a more suitable path in the current regulatory environment.

Broader Context

This regulatory hurdle in the U.S. adds to a period of increased scrutiny for the global payments firm. The denial follows separate money laundering claims made against the company in Belgium in early June, creating further uncertainty for investors.

Wise management clarified that its pursuit of a U.S. charter is focused on achieving direct payment system access and does not represent a strategic shift into stablecoin operations.