WISE DENIED US BANKING LICENCE MONTHS AFTER NASDAQ LISTING

Wise, the London-founded payments firm, has been denied a national bank charter by the US Office of the Comptroller of the Currency (OCC). The company had applied for the licence to operate under federal regulation and gain direct access to Federal Reserve payment systems. Wise said the rejection related to historical issues with its original application, including matters concerning financial crime. The company stated it has since invested significantly in enhancing compliance processes and financial crime controls globally and in the US. Wise confirmed the decision does not affect its existing US operations under current money transfer licences across 48 states and four territories.

The setback arrives months after Wise moved its primary stock market listing from London to Nasdaq in May, a move the company said would increase visibility in its "biggest market opportunity" and improve access to US investors. According to one report, Wise shares fell more than 7% in early trading in London following the announcement; another stated the decline exceeded 6%. Wise said changes to US payment regulation since the original application was submitted, partly due to new cryptocurrency laws, meant the original application was no longer the appropriate route. A banking licence would allow the company to operate under a single federal regulator rather than managing dozens of state licences, potentially enabling expansion into wider banking products. Wise serves approximately 19 million customers worldwide and processed more than $240bn in cross-border payments in the latest year reported.

Wise said it plans to submit a new application under the updated regulatory framework. The company maintains a secondary listing in London and has previously stated it will continue hiring and investing in the UK. Rival European fintech Revolut submitted a fresh application for a US banking licence earlier this year after abandoning an earlier attempt, indicating the licensing pathway remains contested among the sector.