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Interest-Bearing Accounts For Cannabis Companies Now A Reality
Cannabis companies can open interest-bearing accounts with Safe Harbor Financial, a move some say was long overdue.
Anna Lad & Robert Baron
July 16, 2023
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Banking News
Safe Harbor Financial Offers Cannabis-Friendly Accounts
The cannabis-friendly bank made the decision to launch interest-bearing commercial deposit accounts in an effort to ‘normalize’ cannabis banking. Safe Harbor Financial’s accounts are open to any cannabis business in the United States. The new product aims to address the industry's unmet need for interest-bearing options, providing depositors with the opportunity to earn interest income without maximum balance limitations.
CEO of Safe Harbor Sundie Seefried, said:
Interest-bearing accounts are especially important to large depositors in the current banking climate, and we’re proud to be able to offer our clients more of the important financial and treasury tools that they need to grow and protect their businesses.
Twitter Inches Closer to “Everything App”
Twitter Payments LLC, a subsidiary of Twitter, was granted a money transmitter license by the state of Arizona, bringing the social media platform closer to its goal of enabling users to send and receive money. Owner Elon Musk aims for Twitter to generate $1.3 billion in payment revenue by 2028. The move is also a signifier of Musk’s goal of transforming Twitter into “X,” complete ecosystem of payments, messaging, and social media.
AI & Blockchain
Celsius Pays $4.7B, Ex-CEO Faces Fraud Charges
Celsius ex-CEO Alex Mashinsky has been arrested and charged with fraud, while Celsius itself agreed to pay a $4.7B settlement with the Federal Trade Commission (FTC). Mashinsky and Celsius' CRO could face prison time, and the settlement permanently bans Celsius from offering certain services. The company also owes approximately $4.7B to customers whose funds were frozen in 2022, and the settlement will only be paid once the assets are returned. The SEC and Commodity Futures Trading Commission sued Mashinsky too.
The director of the FTC’s Bureau of Consumer Protection, Samuel Levine, wrote:
Today’s action banning Celsius from handling people’s money and holding its executives accountable should make clear that emerging technologies are not above the law…Celsius touted a new business model but engaged in an old-fashioned swindle.
New Checking Accounts More Digital than Ever
Digital banks and fintechs are gaining ground in the battle for new checking accounts, comprising nearly half (47%) of all new accounts opened in 2023, up from 36% in 2020, according to a survey by Cornerstone Advisors. Traditional banks' share declined, but consumers still maintain relationships with legacy institutions for in-person services and safety concerns. However, the ability to access desired features and tools is driving customers to new platforms. The disintermediation of financial footprints is challenging traditional banks to rethink their checking account products.