Wise Shares Plummet 10% After National Trust Bank Application Rejected
LONDON-LISTED shares of Wise plummeted by 10% on Friday after the fintech firm announced that its application to become a national trust bank in the United States had been rejected by regulators. The U.S. Office of the Comptroller of the Currency cited changes in federal policies for payment system access as the reason for the denial.
Wise submitted its application last June, but major regulatory shifts have since rendered it incompatible with the Federal Reserve's new policies. The company now plans to reapply under the GENIUS Act framework, which pertains specifically to digital assets like stablecoins.
The firm emphasized that its infrastructure is well-suited to interact with digital assets alongside traditional payment rails. Additionally, Wise revealed that regulators had previously flagged a U.S. consent order related to compliance violations, prompting the company to strengthen its internal safety processes.