The US Office of the Comptroller of the Currency denied Wise's application to establish a national trust bank, citing conflicts with updated Federal Reserve policies. Wise's London-listed shares dropped 10% following the announcement.
Wise, the London-based money transfer platform, received rejection from the OCC due to incompatibility with newly implemented Federal Reserve regulations. The fintech company had sought to expand into trust banking services but faced regulatory obstacles.
Wise responded to the denial by committing to reapply for the charter once circumstances align with federal policy requirements. The company did not specify a timeline for resubmission or detail potential modifications to its application.
The rejection marks a setback for Wise's expansion into traditional banking services. The company has previously pursued regulatory approvals to broaden its financial offerings beyond cross-border payments and currency exchange.
Stock markets reacted swiftly to the news, with shares dropping sharply in Friday trading. The decision underscores ongoing regulatory scrutiny of fintech firms seeking to operate as federally-chartered banks in the US financial system.
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