Wise Sees Shares Plummet After US Regulators Reject National Trust Bank Application

London-listed shares of Wise plummeted by 10% on Friday after the company's application to create a national trust bank in the United States was rejected by regulators.

The U.S. Office of the Comptroller of the Currency denied Wise's application, citing that it was incompatible with the Federal Reserve's new policies for payment system access.

The fintech firm had submitted its application in June last year, but major changes in financial policy since then have made its approach non-viable.

Wise plans to resubmit a new application under the GENIUS Act framework, which pertains to digital assets like stablecoins. The company believes its infrastructure is well-positioned to interoperate with these assets alongside existing payment rails.