Wise to Reapply for US National Trust Bank Charter Under GENIUS Act
Wise is preparing to submit a new application for a U.S. national trust bank charter under the framework established by the GENIUS Act. The decision follows the Office of the Comptroller of the Currency (OCC) rejecting the company’s earlier application. According to a research note from William Blair, the new filing is expected to align with updated U.S. regulations governing payment stablecoins and digital asset banking.
OCC Denial Linked to Federal Reserve Policy Changes
The OCC rejected Wise’s previous application because it did not meet the latest Federal Reserve policies regarding access to payment system Master Accounts. Analysts at William Blair explained that the Fed has temporarily paused granting new Master Accounts while developing rules for limited purpose payment accounts. As a result, Wise’s original banking strategy was no longer compatible with the updated regulatory framework.
GENIUS Act Reshapes Stablecoin Banking Rules
Since the GENIUS Act became law, U.S. regulators have approved several companies seeking to provide stablecoin related banking services. Firms connected to Circle, BitGo, Paxos, Ripple, Coinbase, Crypto.com, and Laser Digital National Trust Bank have received approvals or conditional banking charters. The legislation created a clear regulatory framework for payment stablecoins backed by secure assets such as cash and U.S. Treasury securities.
Wise Remains Focused on Cross Border Payments
Despite submitting a new application under the GENIUS Act, William Blair analysts do not expect a significant change in Wise’s business strategy. The company continues to focus on making cross border payments faster and more affordable rather than expanding aggressively into the stablecoin market. Wise has also strengthened its compliance programs following previous anti money laundering concerns and says its payment infrastructure can support both blockchain networks and traditional financial systems.
Analysts Maintain Positive Outlook for Wise
William Blair reaffirmed its Outperform rating on Wise, stating that the company’s long term growth outlook remains strong despite the regulatory setback. Analysts believe a successful national trust bank charter could improve Wise’s access to U.S. payment infrastructure while supporting its mission to reduce international transfer costs. However, they expect the company to remain technology neutral, using whichever payment rails offer the best experience for customers.
