Wise to reapply for US bank charter after OCC denial over Fed access
Wise will resubmit its US national trust bank application under the GENIUS Act framework after an initial rejection tied to Federal Reserve master account restrictions, keeping it in a race with major financial firms for stablecoin infrastructure.
Wise is preparing a new application for a US national trust bank charter under the GENIUS Act framework, following a denial from the Office of the Comptroller of the Currency. The OCC rejected the initial bid in a July 21 letter, deeming it incompatible with new Federal Reserve policies governing payment system access.
The rejection centered on Wise’s reliance on a Federal Reserve Master Account. The central bank has effectively frozen these accounts for Tier-3, uninsured, non-federally supervised entities while it develops formal "payment account" policies proposed in May 2026.
Reuters reported that the OCC’s denial also flagged historical compliance issues. This included a July 2025 multi-state consent order concerning anti-money laundering risk management, though Wise asserts it has since strengthened those controls.
The GENIUS Act, passed in the summer of 2025, established clear rules for payment stablecoins backed by cash or Treasuries. The OCC has since overhauled its oversight approach under President Donald Trump’s second term, greenlighting a wave of crypto and traditional finance entrants.
Conditional or full approvals have gone to entities affiliated with Circle, BitGo, Coinbase, Crypto.com, Paxos, Ripple, and Fidelity. Circle secured its official charter status earlier this month, while Morgan Stanley and Charles Schwab have recently initiated their own application processes. Kraken Financial remains the only crypto firm with direct Fed payment rail access, having secured a limited-purpose master account in March.
Despite entering the regulatory fray for stablecoin infrastructure, analysts do not expect a strategic pivot from the money transfer firm. "Although Wise plans to submit a new application under a Genius Act framework, we do not anticipate a major shift in the company's stance on stablecoins — Wise is focused on lowering the cost of cross-border transactions, agnostic of the rail," William Blair analysts Cristopher Kennedy and Marc Feldman wrote.
The brokerage maintained its Outperform rating on the stock. William Blair noted that its discounted cash flow analysis "implies at least a $19 stock price" for the company.
