Wise to Debut on Nasdaq After Moving Main Listing from London to New York
Wise's Strategic Move to the U.S. Market
By Hannah Lang
Background and Rationale for the Move
NEW YORK, NEW YORK, May 11 (Reuters) - Money transfer company Wise is set to debut on the Nasdaq on Monday, shifting its primary listing from London to New York as the fintech unicorn seeks expanded capital markets benefits and greater U.S. visibility.
Wise, which made its debut on the London market in 2021, made the decision last year to move its primary listing to the U.S., while maintaining a secondary listing in London, where it is based.
Company Overview and Performance
Founded in 2011, Wise provides low-cost cross-border payments and multi-currency banking services to consumers and businesses. Wise said on Monday that it facilitated $243 billion in cross-border volume in the financial year that ended March 31, an increase of 31% compared to the previous year.
Impact on London Market
The decision by Wise to move its listing was another blow for Britain's hopes of reviving the London market, where the appeal of deeper and better performing markets elsewhere has encouraged companies to switch their listing while fewer new firms have joined.
Leadership Insights and U.S. Expansion
CEO and CFO Perspectives
CEO and co-founder Kristo Kaarmann said at the time that Wise's planned move was due to the U.S. having the world's deepest and most liquid capital markets, making it easier for investors to buy shares in the company.
"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," said Emmanuel Thomassin, the chief financial officer at Wise, in an interview.
Regulatory Developments
Application for U.S. Trust Bank Charter
Wise in July applied to create a national trust bank in the U.S. under the Office of the Comptroller of the Currency, joining a spate of fintech companies aiming to bypass intermediary banks and settle U.S. dollar payments directly with the Federal Reserve.
If the charter is granted, it could allow Wise to potentially cut costs, speed up transfers and offer it tighter control over its largest currency flow.
Plans for Federal Reserve Master Account
Wise has also said that it plans to seek a master account with the Federal Reserve. Fed master accounts are often likened to bank accounts for banks, letting account holders move funds directly via the Fed's payment rails.
"We're building this network, and this network is based on direct connection, so we need to have direct connection to the payment systems," said Thomassin.
U.S. Operations and Workforce
The company's U.S. hub will be in Austin, Texas, Wise previously said. It has more than 750 employees in the U.S., a spokesperson said.
(Reporting by Hannah Lang in New YorkEditing by Nick Zieminski)
