SHF Holdings, Inc. (NASDAQ: SHFS)

SHF Holdings Inc is based in Golden Colorado and was founded in 2015 by Partner Colorado Credit Union to provide compliant banking and lending services to cannabis related businesses. The company offers compliance and loan origination services to financial institutions that wish to serve the legal cannabis hemp and related industries. Its proprietary technology platform operates across 41 states and territories and enables banks and credit unions to offer business checking savings accounts cash management commercial lending ACH and wire payments to cannabis related customers. Core service offerings include regulatory compliance consulting and technology cannabis related deposit services and lending services.

The company generates revenue primarily through fees charged for onboarding cannabis related businesses through its financial institution partners. It also earns monthly deposit and account activity fees based on business type account size and transaction volume. Additionally the company receives a share of loan program income from loans originated by its partner credit union under the Second Amended Commercial Alliance Agreement. Investment income earned when partner institutions invest cannabis related deposits in low risk assets also contributes to revenue. Licensing of its compliance platform to other financial institutions and merchant service fees provide further income streams.

SHF Holdings Inc positions itself as a leading compliance driven financial services platform for the United States cannabis industry. The company differentiates itself through more than ten years of operational experience a zero lending failure history and strong relationships with state and federal banking regulators. Its proprietary platform has facilitated approximately thirty five point four billion dollars in cannabis related deposit activity since inception and has supported partners through more than twenty five state and federal banking examinations. Competitors include software as a service compliance providers and integrated fintech companies that bundle compliance with broader financial services but SHF Holdings Inc cites its comprehensive suite of services deep cannabis domain expertise and proven regulatory track record as key advantages.

The company serves financial institutions such as banks and credit unions that seek to offer compliant banking services to cannabis related businesses. Its primary partner is Partner Colorado Credit Union which holds the majority of cannabis related deposit accounts processed through the platform. While other financial institution relationships exist the filing does not disclose additional specific names. Ultimately the cannabis related businesses including cultivators processors manufacturers dispensaries and multi state operators benefit indirectly from the services provided to the partner institutions.