Wise, the London-based fintech giant known for making international money transfers cheaper, has officially moved its primary listing from London to Nasdaq in New York. The company started trading on Nasdaq under the ticker WSE, marking a significant shift in its strategy to access deeper US capital markets. This move is part of a broader effort by Wise to expand its presence in the United States, including applying for a US banking charter and seeking access to Federal Reserve payment systems.

Switching Stock Exchanges and Growing in the US

Wise’s shares opened at around $15.96 after its debut on Nasdaq, with the company maintaining a secondary listing in London. The move was largely driven by the need for greater liquidity and more favorable valuation multiples, which London’s stock market has struggled to provide for tech firms. Nearly 91% of shareholders approved the secondary move, showing strong support for the transition.

Since its London IPO in July 2021, Wise was valued at roughly $11 billion. Now, with its primary listing in the US, the company aims to tap into the world’s deepest and most liquid markets. CEO Kristo Kaarmann explained that the move gives existing shareholders better opportunities to buy and sell shares and unlocks new growth potential by accessing American investors who value revenue growth and expansion into banking services.

Applying for a US Banking Charter and Federal Reserve Access

Beyond the stock listing, Wise has filed for a US national trust bank charter, proposing to establish Wise National Trust based in Austin, Texas. If approved, this would give Wise a single federal regulator and legitimize its operations as a US bank. The company also plans to seek a master account at the Federal Reserve Bank of Dallas, which would allow direct access to US payment rails like FedNow. This would enable Wise to clear and settle US dollar transactions directly through the Fed, reducing costs and increasing efficiency.

This move signifies a shift from being a foreign fintech offering cross-border transfers to becoming a full-fledged US financial institution. If successful, Wise would join a small group of fintechs with direct access to the Fed’s payment system, putting it in a strong position to compete with traditional banks and payment providers.

The Austin hub isn’t just an office but the foundation for Wise’s US banking operations. It reflects the company’s long-term plans to expand into US banking and payment services, offering a more seamless experience for US customers and businesses.

Broader Trends and Industry Impact

Wise’s migration is part of a larger trend where many UK tech companies are leaving London’s stock market. Over the past five years, more than $100 billion in market value has moved from London to US exchanges. Companies like Arm, CRH, Flutter, and Darktrace have either switched their listings or left London altogether, citing liquidity, valuation, and analyst coverage issues.

This pattern shows that London’s market often struggles to support the growth of fast-expanding tech firms. By relocating to the US, these companies aim to access deeper pools of capital and more sophisticated investors. Wise’s move highlights the increasing importance of US markets for global tech and fintech companies looking to scale quickly and raise funds efficiently.

Overall, Wise’s transition to Nasdaq and its push into US banking signals a new chapter for the company. It’s not just a change of stock exchange but a strategic shift towards deeper integration into the American financial system. If the banking charter and Fed master account are approved, Wise could significantly lower transaction costs, improve payment speed, and compete more directly with traditional banks and payment networks. The company’s growth trajectory, combined with its move into US banking, positions it as a major player in the evolving cross-border payments landscape.

Inspired by

• https://thenextweb.com/news/wise-nasdaq-listing-london-stock-exchange-fintech

Sources

• reuters.com