Regulators Block Wise from Launching a US National Trust Bank

Financial regulators dealt a surprise blow to Wise this week after the Office of the Comptroller of the Currency denied its application for a national trust bank charter. The company confirmed the decision on Friday. This rejection marks a notable change in pace from the regulator, which had previously approved several similar requests from other fintech and digital asset companies over the last eight months.

Following the announcement, Wise saw its share price dip as investors reacted to the news. The denial is a significant setback for the payments firm, as a national trust charter would have allowed the company to offer a wider range of banking services directly to its American customers without relying on partner banks.

While the industry remains focused on how regulators approach fintech expansion, this move suggests a more cautious stance from officials. Market participants will be watching closely to see if this marks the beginning of a stricter trend for other companies seeking banking status in the United States.