Wise has been denied a US banking licence, dealing a significant blow to the payments firm’s ambitions in the American market.
The rejection arrives months after the company shifted its main stock market listing to the London Stock Exchange, a move that had been part of a broader strategic pivot.
The decision by US regulators marks a major regulatory hurdle for the fintech.
Wise had applied for a national bank charter, a critical step for deepening its integration into the US financial system and offering a wider range of banking services to its customers.
The denial forces the company to reconsider its operational model in the world’s largest economy.
Shares in Wise Group (LSE: WISE) fell sharply in London trading following the news.