Wise turns to GENIUS Act after OCC rejects U.S. bank charter

Wise plans to submit a new application for a U.S. national trust bank charter under the GENIUS Act after the Office of the Comptroller of the Currency rejected its first bid.

The July 21 decision ended the payments company’s effort to create Wise National Trust in Austin, Texas. Wise disclosed the outcome on July 24 and said its current U.S. services continue without change. The company still operates through money-transmitter licences across 48 states and four territories.

The new filing will use the federal framework for payment stablecoins rather than the structure in Wise’s original June 2025 application. Wise said the earlier plan relied on access to Federal Reserve payment systems that is no longer practical. Its London-listed shares fell as much as 10% after the denial became public. Wise said it had strengthened financial-crime controls since filing the original plan and would address the regulator’s findings in its next submission.

OCC rejects Wise application over compliance concerns

The OCC’s decision said Wise did not show that the proposed trust bank could meet U.S. legal and regulatory requirements. The regulator focused on weaknesses in anti-money laundering and countering the financing of terrorism controls. It also said Wise U.S. had a record of failing to meet rules that apply to money services businesses. The proposed bank planned to rely heavily on Wise U.S. and other group companies for compliance work.

The regulator also questioned the experience of the proposed directors and managers. It said the team did not show enough knowledge of national banking rules, fiduciary services, or AML/CFT operations. Wise National Trust had planned to offer multi-currency stored-value accounts, payment processing, and fiduciary services. The OCC stated that approval would conflict with its charter policies. However, the decision does not stop Wise from filing another application after addressing the issues.

Wise shifts its plan toward the GENIUS Act

Wise gave a separate reason for changing course. The company said 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, which 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 also said they do not expect a major change in Wise’s position. They described the company as “agnostic of the rail,” meaning it remains focused on lowering cross-border payment costs whether transfers use traditional systems or digital assets.

Stablecoin rules remain unfinished

The GENIUS Act became law in July 2025. It sets reserve, redemption, reporting, consumer protection, and compliance requirements for approved payment stablecoin 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, while Treasury later proposed AML and sanctions standards.

Final rules were still pending when Wise announced its new plan. As crypto.news reported, 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/CFT 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 joins a wider U.S. charter race

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. Crypto.news reported that 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, but it will still require Wise to satisfy the OCC’s standards before gaining a charter.