Wise Shares Fall After U.S. Regulators Deny Bank Charter Application

Shares of Wise PLC (WISE.L) fell sharply on Friday after U.S. regulators denied the company's application for a national trust bank charter, a significant setback for the fintech firm's expansion plans in the United States.

Regulatory Denial

The U.S. Office of the Comptroller of the Currency (OCC) formally rejected Wise's application in a decision disclosed after the London market closed on Thursday. The stock reacted when trading resumed Friday, declining 6.4% to 847.4 pence and hitting a session low of 806.2 pence.

The OCC cited two primary reasons for its decision:

• A Federal Reserve pause on granting master accounts to uninsured trust banks, a mechanism that was central to Wise's application for direct access to the Fed's payment systems.
• Outstanding compliance concerns related to a Multi-State Consent Order issued against Wise in July 2025.

Strategic Implications for Wise

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Securing a trust bank charter was a key component of Wise's U.S. growth strategy. The charter would have allowed the company to connect directly to the Federal Reserve's payment network, reducing its reliance on third-party banking intermediaries and potentially lowering transaction costs for its customers.

Wise has stated that the decision does not affect its current U.S. operations, which are conducted under state-level money transmitter licenses. The company also indicated its intent to submit a new application under the GENIUS Act framework, though the timeline for any future approval remains uncertain.

Market Context and Investor Takeaway

The sell-off was amplified by a broader risk-off sentiment in UK markets. For investors, the OCC's denial removes a key near-term growth catalyst and introduces fresh uncertainty around the company's compliance and regulatory standing in the U.S. The market is now reassessing the timeline and feasibility of Wise achieving a more integrated position within the U.S. financial system.