Wise, the pioneering British money transfer fintech, has confirmed plans to move its primary listing to the U.S., a development that reverberates far beyond the City of London. In a terse Thursday announcement, Wise stated its intention to allow its shares to trade on both a major U.S. exchange and the London Stock Exchange (LSE). For London’s once-booming fintech sector—and the broader UK capital market—this is more than a corporate footnote; it’s a wake-up call that ought to stir policymakers, investors, and entrepreneurs alike.
For years, the LSE and UK policymakers have championed the City as Europe’s financial heart, betting on its ability to attract and retain high-growth technology firms. Wise’s decision, following in the footsteps of other UK-born tech names such as Arm and CRH, is a sharp repudiation of those efforts. The message is unambiguous: for global fintechs seeking deeper capital and more liquidity, New York’s allure is growing. This isn’t just about prestige; it’s about survival in a cutthroat sector where scale, investor appetite, and regulatory clarity make all the difference.
For the average UK retail investor, Wise’s dual listing means potential access to a broader, more liquid market. U.S. bourses like the Nasdaq and NYSE boast trading volumes and analyst coverage that dwarf their European counterparts. That could translate into tighter spreads, more price discovery, and—crucially—a shot at higher valuations. But this liquidity comes at a price: exposure to the vagaries of American markets, from the whiplash of Wall Street sentiment to differing regulatory frameworks. The U.S. Securities and Exchange Commission (SEC) is an altogether different beast than its UK equivalent, the Financial Conduct Authority (FCA), and compliance costs will rise accordingly.
For Wise’s thousands of employees, the move could be a mixed blessing. On the one hand, a U.S. listing may boost the company’s profile, open up new stock-based compensation schemes, and attract global tech talent. On the other, it could accelerate a brain drain from the UK, as top-tier fintech professionals chase opportunities in New York or Silicon Valley. Already, the UK tech sector has voiced concerns about losing its best and brightest to more dynamic U.S. markets. Wise’s shift turns those anxieties into reality.
Small British investors—the backbone of London’s retail investment boom—face fresh complexity. Although dual listings are designed to preserve access, history shows that secondary home markets often lose relevance over time. When CRH, the building materials giant, shifted its primary listing to New York, trading volumes on the LSE dwindled. There is a risk that Wise may follow suit. If the company’s liquidity and analyst following migrate westward, UK-based investors could find themselves at a disadvantage, facing higher costs or reduced access to management. The psychological blow shouldn’t be underestimated either: London’s status as a launchpad for global tech stories is under real threat.
From a macroeconomic perspective, Wise’s move is a symptom of a deeper malaise afflicting UK capital markets. The number of companies listed on the LSE has fallen by over a third since 2007, with IPO activity lagging well behind New York and even Amsterdam. Brexit, for all its political drama, has compounded the perception that London is losing its edge. Regulatory reforms have been promised, but progress remains slow. Institutional investors, the pension funds and insurance groups whose backing underpins public markets, have been steadily shifting allocations away from equities. Without urgent intervention, Wise’s departure could become a template for others.
For policy-makers, the stakes are existential. The UK government has made much of its ambition to foster a “science and tech superpower,” but the capital market infrastructure must match the rhetoric. The Kalifa Review of UK Fintech, published in 2021, warned of the risk that high-growth technology companies would seek foreign listings unless the LSE reformed its rules, including free float requirements and dual-class share structures. While some changes have been enacted, they may prove too little, too late. Wise’s decision is a data point, but also a warning shot.
For investors, the opportunity—and risk—profile shifts. U.S. markets prize growth and are less squeamish about unprofitable disruptors, often rewarding tech firms with higher multiples. Wise, which has built a fiercely loyal customer base by undercutting traditional banks on cross-border fees, may find itself more richly valued stateside. That means existing shareholders could see a bump in their holdings, at least in the short term. But with increased U.S. scrutiny comes volatility. American investors can be fickle, and the quarterly earnings treadmill is unforgiving. For those who remember Deliveroo’s disastrous London IPO, the lesson is clear: Where you list matters, but so does how you manage expectations.
Small businesses—Wise’s core clientele—are by no means unaffected. The company’s rebranding as a transatlantic player could bring new products, more aggressive pricing, and faster innovation. If Wise leverages the U.S. capital markets to fund R&D or acquisitions, customers might benefit from enhanced services or lower fees. But there are downsides: as the company’s center of gravity shifts, UK-based SMEs may worry that their needs will be deprioritized in favor of U.S. or global expansion. In the worst case, regulatory divergence between the U.S. and UK could complicate compliance, onboarding, or settlement times.
The psychological dimension should not be ignored. For decades, London has been the natural home for Europe’s fintech disruptors, a place where risk-takers could tap deep pools of capital and global talent. Wise’s move is a symbolic defeat—one that will echo in the corridors of Westminster and the boardrooms of UK unicorns. It risks demoralizing founders and investors, who may now see the U.S. not only as a bigger market but as the logical listing destination. The “brain drain” becomes a “capital drain,” with knock-on effects for jobs, tax revenues, and the UK’s strategic ambitions.
For rival exchanges, Wise’s decision is both a competitive threat and an opportunity. Euronext, which has been quietly courting UK firms post-Brexit, may pitch itself as a tech-friendly alternative for those unwilling to brave the complexities of New York. Hong Kong and Singapore, both keen to position themselves as fintech gateways, will watch closely. But the gravitational pull of the U.S.—with its deep investor base, sophisticated analyst community, and global reach—remains hard to match.
Ultimately, Wise’s primary U.S. listing encapsulates the new realities of global capital. For companies at the cutting edge of fintech, geography is increasingly irrelevant—capital, talent, and customers are borderless. But for the UK, which has long prided itself on its financial prowess, the loss is acute. It’s a reminder that markets, like companies, must adapt or risk irrelevance.
For the average investor, the lesson is to think globally. The days when London alone could deliver tech growth have passed. Diversification, both in geography and sector, is more important than ever. For UK policymakers, Wise’s move is a call to action: reform, incentivize, and compete—or risk watching the next generation of champions ring the opening bell in New York, not London.
Next
Wise shifting its primary listing to the U.S. is a major blow to London’s fintech ambitions. It signals that UK markets aren’t keeping up with global capital demands. Unless policymakers act fast to reform and compete, more firms will follow—and London risks fading as a global tech hub.
SHASHWATH JAIIN
Founder of Markets24
Comments (0)
Leave a comment