Unlocking Billions: How Green Check is Revolutionizing Cannabis Banking

Green Check: Transforming Cannabis Sales into Legal Revenue

Green Check is making waves by verifying $1 billion in legal marijuana sales every month through its banking compliance software. Founded by former Apple executive Kevin Hart, this Florida-based company is cashing in on an industry where cash is king.

In February 2016, Hart's eye-opening experience inside a vault filled with cash at Harborside, one of the first medical marijuana dispensaries in the U.S., revealed a significant problem: cannabis businesses were unable to access traditional banking services due to federal illegality.

Despite marijuana being legal in 38 states, including 25 for recreational use, federal law still classifies it as illegal. This has led to about 75% of cannabis sales being conducted in cash, creating a massive challenge for the industry. Hart's mission became clear: to bridge the gap between state-licensed cannabis companies and banks.

A Data-Driven Solution

Hart and his cofounders developed a compliance software that helps banks work with cannabis companies by verifying that every dollar and product complies with state laws. The software integrates with dispensaries’ payment systems, ensuring compliance with the Bank Secrecy Act and anti-money laundering rules.

Green Check’s software processes about 40% of the U.S. legal marijuana market, with over 150 financial institutions using it to help more than 11,000 cannabis companies maintain their bank accounts. Banks pay around $5,000 a month, while cannabis companies access the software for free.

Financial Growth and Industry Impact

In 2022, Green Check reported $8.3 million in revenue, expecting to reach $12 million in 2023. Since its inception, the company has raised $19 million, achieving a $90 million valuation. Its largest client, Valley National Bank, collaborates with various cannabis companies to ensure compliance and security in transactions.

The Future of Cannabis Banking

As the federal SAFE Banking Act faces legislative hurdles, Green Check continues to expand, adding new businesses daily. The platform enables financial institutions to work with cannabis companies, ensuring transparency and compliance in a highly regulated industry. Hart emphasizes the importance of compliance, stating, "We make sure banks bring good money in and keep bad money out."

With ongoing legislative changes on the horizon, Green Check is poised to adapt and thrive, regardless of how the laws evolve. Hart predicts that more regulations will only enhance their business, as tracking and compliance become paramount in the cannabis industry.

Green Check is not just facilitating banking; it is paving the way for a more structured and compliant cannabis marketplace.