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Wise shares fall 10% after US trust bank application denied
Wise said the OCC cited incompatibility with the Federal Reserve's new payment system access policies, and it plans to reapply under the GENIUS Act framework tied to digital assets like stablecoins.
Wise, the London-listed money transfer company, said its application to create a national trust bank in the United States was denied by regulators, triggering a sharp move in its shares.
According to Reuters, Wise fell 10% on Friday after the U.S. Office of the Comptroller of the Currency denied the application as incompatible with the Federal Reserve's updated policies for payment system access. Wise said the denial left its plan to settle U.S. dollar payments directly with the Fed non-viable amid changes to U.S. payment regulations since it filed the application in June last year.
The company said the Federal Reserve has generally paused account access for an uninsured trust bank, and that it will submit a new application for a national trust bank charter under the GENIUS Act framework, which pertains to digital assets like stablecoins.
Wise also said the regulator flagged a U.S. consent order from last year related to compliance violations, and that it has strengthened safety processes since then. The firm added that its infrastructure is positioned to interoperate with digital assets alongside existing payment rails.