SHF Holdings, Inc.
SHF Holdings, Inc. is a U.S.-based financial services company built around compliance-focused banking and lending access for cannabis-related businesses. Through its proprietary platform and relationships with financial institutions, it provides account onboarding, cash management, payment processing, monitoring, and related support services in regulated markets.
Fiscal year 2025 · change from previous year
Development 2021–2025
Business
Share of revenueSoftware and program services that help banks serve cannabis-related businesses compliantly.
Cash management, ACH, wire, courier, and remote deposit services tied to CRB accounts.
Commercial lending access and loan origination support for cannabis operators and related businesses.
Banking operations support, onboarding, monitoring, and exam assistance for financial institutions.
Customers
SHF primarily serves financial institutions that want to offer banking services to cannabis-related businesses but need compliance infrastructure to do so. Its end users also include cannabis operators and ancillary service providers that need deposit, payment, and lending access in a cash-heavy industry. The company’s model depends on both sides: banks provide the regulated accounts, while CRBs generate the transaction activity and fee opportunities.
Banks and credit unions license SHF's program and services to serve cannabis clients compliantly.
Operators use the platform for checking, cash management, payments, and monitored deposits.
Borrowers and loan counterparties use SHF-supported lending channels for working capital and secured credit.
Non-plant-touching businesses use the platform when they also face banking access constraints.
Strategy
SHF’s strategy centers on expanding its client base through strategic partnerships and broadening the set of financial services offered to cannabis operators. It also seeks to deepen relationships with financial institutions by providing a compliant operating framework, exam support, and outsourced banking services that reduce the burden of serving this niche market.
Partnerships extend distribution without building a full banking network from scratch.
More services per client can increase account activity and make the platform stickier.
The business depends on banks trusting the program to satisfy BSA/AML expectations.
Geography
SHF operates in the United States and focuses on strategically selected state markets where cannabis banking demand exists and financial institutions are willing to participate. Its business is shaped by state-by-state cannabis legalization and by federal banking compliance requirements, which determine where partner institutions can operate. The company’s services are multi-state in nature, but the underlying banking relationships and regulatory exposure remain U.S.-centric.
Risks
The business is exposed to regulatory and compliance risk because it operates in cannabis banking, where federal and state rules can change and partner banks must remain comfortable with the program. It also faces concentration and liquidity risk tied to a small number of banking relationships, legal disputes, and the need to fund operations while transaction volumes and fees can fluctuate with client activity.
- Liquidity and going-concern pressureImpact: CriticalLikelihood: Medium
The company must fund operations and debt service while revenue is tied to client activity.
Exposure: Operating cash flow and senior secured note obligations
- Compliance and exam riskImpact: HighLikelihood: Low
A failure in BSA/AML or monitoring processes could impair the banking program.
Exposure: Bank Secrecy Act / FinCEN guidance
- Cannabis regulatory changeImpact: High
The model relies on banks serving CRBs under current compliance interpretations.
Exposure: Federal and state cannabis banking rules
- Bank partner concentrationImpact: High
Services are delivered through financial institution clients rather than directly holding deposits.
Exposure: PCCU and other partner institutions
- Legal and shareholder disputesImpact: MediumLikelihood: High
Litigation can create cash outflows and distract management from operating execution.
Exposure: Ongoing legal matters
Accounting
Judgemental itemsPublic, private placement, PIPE, and Abaca warrants are treated as derivative liabilities and remeasured.
Impact: Can create significant non-cash gains or losses each period
Liquidity and debt service capacity determine whether substantial doubt exists.
Impact: Affects disclosure and investor assessment of solvency risk
Management concluded deferred tax assets were not more likely than not realizable.
Impact: Limits tax benefit recognition and can affect reported tax expense
Litigation and settlement-related items may require accrual or disclosure.
Impact: Can affect operating expenses and balance sheet liabilities
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Last updated: 24/09/2026