Wise is due to begin trading on the Nasdaq on Monday after completing a shift that makes New York its primary listing venue while preserving a secondary listing in London, where the company is based. The move reflects the fintech firm's aim to access a broader capital base and increase its profile in U.S. markets.
Launched on the London market in 2021, Wise decided last year to transfer its primary listing to the United States. The company, founded in 2011, provides low-cost cross-border payments and multi-currency banking services to both consumers and corporate clients.
In an update on Monday, Wise reported that it handled $243 billion in cross-border volume in the financial year ended March 31, an increase of 31% compared with the prior year. The company is positioning the Nasdaq listing as a way to leverage deeper liquidity and broader investor access in U.S. capital markets.
The decision to re-domicile the primary listing is likely to be read as another setback for efforts to reinvigorate London’s equity markets, where a mix of stronger opportunities overseas and weaker domestic issuance has encouraged some companies to switch listings or avoid London launches.
Kristo Kaarmann, the CEO and co-founder, said the planned move was motivated by the United States hosting the world’s deepest and most liquid capital markets, which he said makes it easier for investors to buy the company’s shares.
Emmanuel Thomassin, Wise’s chief financial officer, elaborated on the company’s opportunity set in an interview, saying: "We think we have a massive opportunity to play, especially when you look at the technology and infrastructure that we are offering already today compared to what you can find currently, especially in the U.S. bank sector."
On the regulatory and operational front, Wise applied in July to establish a national trust bank in the United States under the Office of the Comptroller of the Currency. That application places the company among a group of fintech firms that seek to reduce reliance on intermediary banks by settling U.S. dollar payments directly with the Federal Reserve.
If Wise’s charter application is approved, the company said it could potentially reduce costs, accelerate the speed of transfers and gain tighter control over its largest currency flow. Wise has also indicated plans to pursue a master account with the Federal Reserve. Such master accounts enable account holders to move funds directly via the Fed’s payment rails and are often compared to bank accounts for banks.
Thomassin framed the regulatory moves as part of a broader effort to build direct connections to payment systems, saying: "We’re building this network, and this network is based on direct connection, so we need to have direct connection to the payment systems."
Operationally in the United States, Wise has designated Austin, Texas, as its U.S. hub. A company spokesperson said Wise employs more than 750 people in the United States.
Summary
Wise has shifted its primary listing to the Nasdaq while keeping a secondary listing in London. The company reported $243 billion in cross-border volume for the fiscal year ended March 31, up 31% year-on-year. Wise is pursuing U.S. regulatory steps - including an OCC national trust bank application and a Federal Reserve master account - that could let it settle dollar payments directly and potentially lower costs and speed transfers. The firm has established its U.S. hub in Austin and reports more than 750 U.S. employees.
Key points
- Listing change - Wise moves its primary listing from London to Nasdaq while maintaining a London secondary listing.
- Volume growth - The company handled $243 billion in cross-border volume in the year ended March 31, a 31% increase from the prior year.
- Regulatory strategy - Wise applied to create a national trust bank under the OCC and plans to seek a Federal Reserve master account to enable direct settlement of U.S. dollar payments.
Risks and uncertainties
- Regulatory approval risk - The OCC charter application is pending, and approval is not guaranteed; without it, Wise would not realize the potential cost and speed benefits described. This affects payments and banking sectors.
- Market reception risk - The effectiveness of the Nasdaq primary listing in securing greater investor access depends on market response and liquidity conditions in U.S. equity markets. This impacts capital markets and fintech investor interest.
- Operational execution risk - Building direct connections to payment systems and obtaining a Federal Reserve master account are operational challenges that could affect the company’s ability to control cost and settlement speed if not successfully executed. This is relevant to payments infrastructure and cross-border settlement.