Wise plans to submit a new application for a U.S. national trust bank charter under the GENIUS Act framework after regulators rejected its original proposal, marking a strategic pivot as the fintech adapts to a rapidly changing U.S. payments landscape.
The London-based money transfer company said the U.S. Office of the Comptroller of the Currency (OCC) denied its application because it was no longer compatible with the Federal Reserve’s updated policies governing access to payment system master accounts. Despite the setback, Wise said it remains committed to obtaining a federal trust charter and believes the new stablecoin regulatory framework offers a more viable path forward.
The announcement sent Wise shares down as much as 10% in London trading on Friday as investors digested the delay in the company’s U.S. banking ambitions.
Wise plans to resubmit national trust bank application under GENIUS Act framework
Why Wise’s Application Was Rejected
Wise originally applied for a national trust bank charter in June 2025 to gain direct access to Federal Reserve payment infrastructure. Such a charter would have allowed the company to settle U.S. dollar payments directly through the Fed, reducing reliance on intermediary banks and improving payment efficiency.
However, while the application was under review, the Federal Reserve significantly changed its approach to payment system access.
Wise said its original proposal depended on obtaining a Federal Reserve master account, but that strategy became unworkable after the Fed effectively paused access for uninsured trust banks while developing a new framework for “payment accounts.”
“As a result, the approach in our application became non-viable,” the company said.
The OCC’s July 21 decision also referenced historical compliance issues contained in Wise’s original filing, although the company said those concerns have since been addressed.
Turning to the GENIUS Act
Instead of abandoning its plans, Wise intends to submit a revised application under the framework established by the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The law created the first comprehensive federal regulatory regime for payment stablecoins, providing clearer rules for reserve-backed digital dollars and institutions seeking to operate within the sector.
Wise said its payments infrastructure is already designed to work alongside both traditional banking rails and blockchain-based payment networks, making it well positioned to operate under the new regulatory environment.
The company stressed that the move does not represent a major shift toward becoming a stablecoin business. Rather, it reflects a desire to remain flexible as digital asset payments become increasingly integrated into the financial system.
William Blair analysts said they do not expect Wise’s core strategy to change, noting that the company remains focused on lowering the cost of international payments regardless of whether transactions ultimately travel over conventional banking infrastructure or blockchain-based networks.
Compliance Program Has Improved
The OCC also highlighted compliance concerns dating back to a multi-state consent order issued in 2025 over deficiencies in Wise’s anti-money laundering (AML) risk management program.
Wise said its business and compliance operations have evolved significantly since the original application was submitted more than a year ago.
According to the company, it has strengthened its AML controls, enhanced internal monitoring systems, and improved customer safety processes in response to regulatory feedback received throughout the application review.
Wise emphasized that the OCC’s decision was based largely on historical issues reflected in the original application rather than its current compliance framework.
Importantly, the rejection has no impact on Wise’s day-to-day operations. The company will continue serving U.S. customers through its existing money transmitter licenses while preparing its revised trust bank application.
A Changing U.S. Regulatory Environment
Wise’s decision comes as U.S. banking regulators increasingly embrace federally regulated digital asset businesses following the introduction of the GENIUS Act.
Over the past several months, the OCC has approved or conditionally approved national trust bank charters for several crypto-focused firms, including Circle, BitGo, Coinbase, Crypto.com, Laser Digital National Trust Bank, and Connectia. Traditional financial institutions such as Morgan Stanley and Charles Schwab have also begun exploring stablecoin-related banking opportunities.
Meanwhile, Circle recently received official national trust charter approval, joining BitGo and Anchorage Digital among federally chartered digital asset institutions.
The regulatory environment has shifted considerably since Wise first submitted its application, making a revised filing more practical than attempting to revive its original proposal.
The OCC approved Ripple’s application to charter a national trust bank
What It Means for Wise
Although the rejection represents a short-term setback, analysts view it primarily as a consequence of changing regulation rather than a rejection of Wise’s long-term business model.
William Blair noted that direct access to Federal Reserve payment rails would have strengthened Wise’s U.S. payments infrastructure, but acknowledged that recent Fed policy changes have effectively delayed similar ambitions for many uninsured trust banks.
Wise believes a new application built around the GENIUS Act will better reflect today’s regulatory framework while positioning the company for future growth as digital assets and traditional financial infrastructure continue to converge.
For now, the fintech remains focused on expanding its low-cost international payments platform while pursuing a charter that could eventually provide more efficient access to the U.S. banking system.
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