Wise Shares Plummet 10% After OCC Rejects US Bank Charter

Fintech company Wise Plc saw its shares drop by as much as 10% in London after the US Office of the Comptroller of the Currency rejected its application to establish a national trust bank.

The rejection came on July 21, with the OCC citing two main reasons: Wise's original strategy was no longer viable due to changes in Federal Reserve guidelines and the company had gaps in its anti-money laundering compliance program.

In a statement, Wise said it plans to refile its charter application under the GENIUS Act framework, which aims to create a regulated pathway for payment stablecoin activities. The company stressed that it does not intend to issue its own stablecoin but instead wants to improve interoperability between conventional payment rails and blockchain networks.

The OCC's rejection highlights the rapidly shifting landscape of US banking regulation. Despite the passage of stablecoin legislation, regulators are still working through charter requests from major digital asset firms such as Circle, Ripple Labs, and Coinbase. However, not all applicants will clear the process, as evidenced by Wise's denial.