SHF Holdings Inc (NASDAQ:SHFS) stock jumped 70% in premarket trading on Tuesday after unveiling its Fully Managed Cannabis Banking Program, a first-of-its-kind solution providing end-to-end operational and compliance outsourcing for financial institutions serving the cannabis industry.
The program enables banks and credit unions to handle cannabis-related deposits without expanding internal teams or assuming additional regulatory risk. Operating under the Safe Harbor Financial brand, the company manages all aspects of the program, including client acquisition, onboarding, compliance oversight, and account support, while partner institutions retain the deposits.
“For more than a decade, we’ve helped financial institutions navigate the complexities of cannabis banking,” said Terry Mendez, CEO of Safe Harbor Financial. “This launch comes as financial institutions increasingly seek safe, scalable ways to serve the cannabis market while mitigating regulatory ambiguity. Our program fills this gap with a proven, compliant path to growth.”
The turnkey platform offers financial institutions a so-called “reputational shield”, limiting their direct association with cannabis operations. The program is also designed to enhance efficiency by reducing startup expenses and operational overhead.
Since 2015, Safe Harbor has processed more than $26 billion in cannabis-related deposits across 41 U.S. states and territories. The company now plans to expand the program to additional banking partners nationwide.
The announcement precedes CEO Terry Mendez’s participation in the PBC Conference 2025, where he will discuss the future of cannabis banking.
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