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FTX Offers Helping Hand to Marijuana Businesses -Breaking

by Mike Robinson

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FTX offers assistance to marijuana businesses

Brett Harrison (US branch president) has suggested a possible partnership with Cresco Labs.

This Illinois-based business is a leader in cannabis-related businesses in America. Cresco Labs, which was established in 2013, is the largest cannabis producer and account for approximately 60% of U.S. marijuana sales.

Despite all this, the company faces financial problems that the crypto market may be able to help with, according to the President of FTX USA.

The Underbanked Receive Help

Although marijuana is legal in some states, MRBs are not well-banked because no bank system major is willing to lend them money.

This situation will continue until marijuana is legalized under federal law or legislation allows federal banks to accept MRBs. Brett Harrison stated this in a thread on Twitter (NYSE:), addressed to Cresco Labs.

His belief is that cannabis-related companies are high-risk clients and traditional financial institutions do not treat them as such. These companies are often unable to obtain the entire range of banking services. Or they must pay more. This forces them to keep cash and to use it first. Harrison said that this raises the likelihood of criminal activity and puts a major burden on law enforcement.

Cresco Labs was also urged by him to look at digital assets in solving the existing problems.

“Crypto exchanges can provide depositary services with lower-fee access to payment rails and a wider array of payment options on the consumer side. MRBs could accept payments and hold reserves in the form of stablecoins,” explained the FTX U.S. president, adding that FTX looks forward to continuing the discussion with Cresco Labs.

Lucrative Cannabis Market

FTX’s appeal to Cresco Labs is probably not without reason.

U.S. Wholesale giant for branded cannabis products, with a market capital of $2.3 billion, is active in nearly every stage of the U.S. marijuana supply chain and trades actively in most U.S. markets, particularly in California which has legalized recreational cannabis.

Cresco Labs is constantly expanding into retail sales. It has made this an integral part of their revenue stream. Cresco Labs has announced that their revenue increased 54.2% during Q3 2021. It also opened its 50th retail location in the US.

It shouldn’t be surprising, given the huge growth in the global marijuana market. The US alone is expected to see cannabis sales surpass $28Billion by 2022 according to BDS Analytics (cannabis market intelligence)

What You Need to Care About

Due to the high level of growth in Cresco Labs, and for cannabis overall, this partnership may have a positive effect on FTX. The ambitious cryptocurrency exchange might be able access a vast pool of potential users to enable them to accept cryptocurrency payments.

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