Summary
The OCC rejected Wise's national trust bank charter application citing persistent AML/CFT compliance failures, in the first high-profile charter denial under the Trump administration. Wise will refile under the GENIUS Act framework, signaling that the stablecoin law is becoming the default pathway for fintechs seeking direct Fed payment-system access.
Key Points
- OCC rejected Wise's national trust bank charter; shares fell ~9–10% on July 24.
- First high-profile charter denial under the Trump administration's lighter-touch approach.
- OCC: "significant supervisory and compliance concerns"; management/board showed "persistent inability" to manage AML/terrorist-financing risks.
- Wise applied June 2025 (Wise National Trust, Austin TX); planned charter + Fed master account at FRB Dallas (incl. FedNow).
- Tightest Fed applicant tier waited ~823 days on average; only one crypto-linked firm has cleared the bar.
- Compliance history: July 2025 multi-state consent order; Belgian investigation into ~€500M suspicious transactions; US subsidiary ~$4M fine for BSA/AML/CFT violations.
- Fed has been "generally pausing account access for an uninsured trust bank" — original approach "non-viable."
- Wise to refile under the GENIUS Act framework for a national trust charter.
- US = close to half of Wise cross-border volume ($243B FY2026, +31% YoY); Chair David Wells calls US "biggest market opportunity."
- Operations unaffected: 48 US states + 4 territories under money transmitter licences; 80+ licences worldwide.
- Context: Revolut spent years on UK banking licence; Monzo walked away from US last year; Augustus pursuing OCC charter; Klarna also pursuing US trust charter.