Company overview

Businesses in the state-legal cannabis industry need bank accounts, payments and credit. SHF Holdings uses its Safe Harbor Program platform and staff to help financial institutions onboard these businesses, check customer identities, monitor transactions and meet regulatory requirements. SHF has no bank or credit-union charter, so partner institutions hold the accounts and move the money; SHF supplies the technology, compliance work and customer relationships.

Most revenue comes through its agreement with PCCU, which holds substantially all deposits brought in through SHF’s platform. SHF earns fees for servicing accounts and a share of the income those deposits generate. It also finds borrowers, evaluates loan applications and services loans for PCCU. PCCU funds the loans and makes final credit decisions, while SHF receives a share of loan-program income and must reimburse PCCU for an agreed share of covered default losses.

The business depends on retaining active accounts and deposit balances: these support account fees and investment income, which also varies with interest rates. Deposits also determine how much lending SHF can arrange under regulatory limits. PCCU faces a separate limit on cannabis-related deposits, making its capacity and continued partnership central to SHF’s business. Cannabis remains illegal under federal law, and serving the industry requires extensive due diligence, transaction monitoring and suspicious-activity reporting.