FTX Crypto Exchange Will Help Cannabis Business In The US

JAKARTA – One of the largest crypto exchanges, FTX, is reportedly planning to form a partnership with cannabis producer Cresco Labs. The Illinois-based crypto trading platform will become the leading cryptocurrency company in the US cannabis business.

Dailycoin reports Cresco Labs is a contributor to 60 percent of the cannabis and medical marijuana market in Uncle Sam's country. However, the company is reportedly experiencing financial problems. Responding to these conditions, US FTX President, Brett Harrison, claimed that his party would help resolve the financial problems experienced by Cresco Labs.

While marijuana is legal in several US states, cannabis-related businesses do not use bank accounts. Because the US national banking system is not ready to accept cannabis companies as clients. The situation is expected to remain that way until federal law legalizes marijuana or a law is passed allowing federal banks to accept business marijuana (MRB).

This was conveyed by Harrison via his Twitter thread addressed to Cresco Labs. The FTX president argues that cannabis-related businesses are still referred to as risky businesses by traditional financial institutions. Therefore, business people in this field often do not have access to various banking services. These circumstances force businesses to keep their own cash.

As an alternative to traditional financial institutions, FTX President offered Cresco Labs to consider digital assets as a way out of the problem.

“Crypto exchanges can provide storage services with lower-cost access to payment channels and wider payment options on the consumer side. MRB can accept payments and hold reserves in the form of stablecoins", Harrison said.

Cresco Labs, a wholesale giant of US branded cannabis products with a market capitalization of US$2.3 billion, is present at almost every step of the US cannabis supply chain. They actively trade in most of the US cannabis market, especially in California, where marijuana use is legal.

Cresco Labs continues to expand into retail sales, which is increasingly becoming an integral part of its revenue stream. Cresco Labs reports that its revenue increased 54.2 percent in Q3 2021, and has opened its 50th retail store in the US.

This should come as no surprise, given the massive growth of the global cannabis market. In the United States alone, cannabis sales are expected to exceed $28 billion by 2022, according to cannabis market intelligence and research firm BDS Analytics as summarized by VOI from Dailycoin on March 22, 2022.