Not being a bank, WISE is not part of the Financial Services Compensation Scheme.
FSCS can pay compensation to customers of authorised financial services firms when they fail. Set up by parliament and funded by the financial services industry, FSCS is a completely independent and free service. This means FSCS can pay back any money you hold with a failed bank or building society, up to its compensation limit of £85,000 per person.
https://www.fscs.org.uk/industry-resources/deposit-protection-banks/#:~:text=FSCS protects you up to,you hold with the bank.
However:-
Is Wise FSCS protected?
One important thing to note is that Wise is not a bank, and as such is not part of the FSCS (Financial Services Compensation Scheme). Instead, as part of the conditions of maintaining a financial service licence in the UK and internationally, Wise must follow a different set of rules to keep customer money safe, known as safeguarding. We’ll explore how that works and how it’s different to FSCS in a moment.
How does Wise keep my money safe?
Wise is not covered by FSCS protection, but instead, as an Electronic Money Institution in the UK, Wise protects customer funds through safeguarding.
This means that Wise holds all customer deposits in either²:
Cash deposits with top tier financial institutions - like Barclays and Citibank
Secure liquid deposits - like government bonds in the UK, US or EU.
https://wise.com/gb/blog/is-wise-safe-uk#:~:text=Wise is not covered by,institutions - like Barclays and Citibank