This makes physical cash the only option for many dispensaries and other cannabis-related businesses. This poses serious security risks since such firms can’t deposit their cash in banks and have to hold and transfer it on their own.

Initially, the pilot would allow cannabis operators to convert cash into a “fully collateralized stable token” and exchange it with other participants of the ecosystem. In the future, the service will also add support for consumer-to-business payments and alternative cryptocurrencies.

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This would allow operators to connect with banking services while consumers will be able to turn their cash into tokenized “credits” at retailers.

As Decrypt reported, crypto derivatives exchange FTX listed tokenized stocks of five cannabis-focused companies in mid-December. And they’ve grown pretty high since then.

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