OCC Rejects Wise's U.S. Bank Charter, Firm Pivots to Stablecoin Law

The Office of the Comptroller of the Currency rejected Wise's application for a U.S. national trust bank charter on July 21. The payments company responded by shifting its strategy to a federal stablecoin licensing framework.

Wise disclosed the outcome on July 24. Its current U.S. services continue without interruption. The company operates through money-transmitter licences in 48 states and four territories. London-listed shares fell as much as 10% after the news.

The regulator cited weaknesses in anti-money laundering and countering the financing of terrorism controls. Wise had a record of failing to meet rules that apply to money services businesses, the OCC said. The proposed bank, Wise National Trust in Austin, Texas, planned to rely heavily on Wise U.S. and other group companies for compliance work. The OCC also questioned the experience of the proposed directors and managers. The team did not show enough knowledge of national banking rules and fiduciary services, according to the decision.

The decision does not stop Wise from filing another application. The company said it had strengthened financial-crime controls since the original June 2025 filing. It would address the regulator's findings in its next submission.

Wise gave a separate reason for changing course. The Federal Reserve has generally paused account access for uninsured trust banks while it develops a new payment-account policy. “With the Federal Reserve generally pausing account access for an uninsured trust bank, the approach in our application became non-viable,” Wise said. The original plan aimed to let Wise settle U.S. dollar payments more directly and reduce its reliance on partner banks.

Wise now plans to apply under the GENIUS Act. The law created a federal licensing and supervision system for payment stablecoin issuers. The company has not said it will launch its own stablecoin. William Blair analysts described the company as “agnostic of the rail.” They said they do not expect a major change in Wise’s position.

The GENIUS Act became law in July 2025. It sets reserve, redemption, reporting, consumer protection, and compliance requirements for approved issuers. The law is due to take effect on January 18, 2027, or 120 days after regulators publish final rules, whichever comes first. The OCC published its main proposed rule in March. Treasury later proposed AML and sanctions standards. Final rules were still pending when Wise announced its new plan. Regulators missed the July 18 rulemaking deadline, leaving key details unresolved.

Wise will need to explain what activities its new entity would conduct, how it would use stablecoins, and how it would meet the stricter AML standards planned for permitted issuers. A new application must also explain how the charter would work without the unrestricted Federal Reserve access assumed in the earlier model.

Wise is entering a crowded federal licensing process. The OCC has approved several digital asset companies for national trust charters during the past year. Circle received final approval in July 2026 after gaining conditional approval in December. Ripple, Paxos, BitGo, Fidelity Digital Assets, Crypto.com, Bridge, and Coinbase have also received conditional decisions or entered the process.

The approvals have drawn opposition from banking groups and some lawmakers. The Bank Policy Institute retained outside lawyers while considering a challenge to the OCC’s trust-charter policy. Wise’s case differs because the regulator issued a direct denial tied to its compliance record and management plan. The new GENIUS Act filing may offer a different route. It will still require Wise to satisfy the OCC’s standards before gaining a charter.