The Office of the Comptroller of the Currency denied Wise's application for a US national trust bank charter, the regulator announced Friday. The decision is a rare public rejection from an agency that has approved trust charters for several crypto and fintech firms over the past eight months. Shares of the London-based payments company fell on the news.
A rare rejection
The OCC didn't detail its reasoning in the brief denial order. But the move stands out because the agency has been steadily granting trust charters to digital asset companies since late last year. Wise had been seeking the charter to offer banking services directly in the US, rather than relying on partnerships with existing banks.
Public denials are unusual. The OCC typically works with applicants to address concerns before issuing a formal rejection. That makes this decision a clear signal that something in Wise's application didn't pass muster.
Wise's US ambitions
Wise already holds state money transmitter licenses and operates in the US through those. A national trust charter would have allowed it to hold customer funds directly and offer a broader range of services, like interest-bearing accounts. Without it, the company will have to continue working with partner banks — a model that can be more expensive and less efficient.
The denial doesn't shut Wise out of the US market. But it complicates the company's growth plans. Wise has been pushing to expand its US customer base and reduce reliance on third-party banking partners. This setback means those plans will take longer or look different.
Eight months of approvals
Since late last year, the OCC has approved trust charters for a handful of crypto and fintech firms. The agency has signaled openness to digital assets under current leadership. But the Wise denial shows that approval isn't automatic. Each application is judged on its own merits, and the OCC is willing to say no.
The timing isn't great for Wise. The company has been investing heavily in its US operations, hiring staff and building out compliance infrastructure. Investors were watching for the charter as a sign of regulatory validation. Instead, they got a rejection that raises questions about how the OCC views non-crypto fintechs.
Wise has not said whether it will appeal or submit a revised application. The OCC's denial order gives no path for reconsideration, leaving the company to weigh its options. For now, the company's US expansion plans face a new hurdle.
