Shares of Wise, the London-listed money transfer company, dropped 10% on Friday after the firm revealed that U.S. regulators had rejected its bid to set up a national trust bank in the United States, a setback linked to sweeping changes in financial policy.
The U.S. Office of the Comptroller of the Currency turned down the application, saying it conflicted with new Federal Reserve policies governing access to payment systems, according to the dual-listed company. Wise had hoped that, as a national trust bank, it would be able to settle U.S. dollar payments directly through the Federal Reserve.
The company noted that U.S. payment regulations have shifted considerably since it first filed the application in June of last year.
“With the Federal Reserve generally pausing account access for an uninsured trust bank, the approach in our application became non-viable,” the company stated.
Despite the setback, Wise said it intends to file a new application for a national trust bank charter, this time under the GENIUS Act framework, which covers digital assets such as stablecoins.
The firm added that its existing infrastructure is well-suited to work alongside digital assets and current payment systems.
Regulators also pointed to a U.S. consent order issued last year related to compliance violations. Wise said it has since taken steps to strengthen its safety and compliance procedures.
