Jack Henry ® (Nasdaq ticker: JKHY) announced today that it has expanded its collaboration with Google Cloud to provide tokenized deposits for banks and credit unions through Google Cloud Universal Ledger ( GCUL ). As part of this expansion, Jack Henry will become the first core technology provider to integrate with GCUL, helping financial institutions modernize their deposit products, strengthen relationships with account holders, and introduce new payment and settlement capabilities. GCUL is a fully managed distributed ledger service that enables financial institutions to tokenize and transfer funds and assets on a shared, real-time record, and supports programmable, 24/7 settlement capabilities.
As the demands of consumers and businesses for real-time, programmable, and seamless financial experiences continue to evolve, community banks and regional financial institutions are facing increasingly fierce competition from large banks and fintech companies. By integrating tokenized deposit infrastructure into the Jack Henry ecosystem, banks and credit unions can explore new transaction scenarios, enhance the digital experience, and better meet the needs of emerging markets.
Jack Henry Chief Technology Officer Ben Metz stated: "Tokenized deposits have the potential to reshape the way funds flow within the entire financial ecosystem. At the core of our strategy is to help financial institutions leverage emerging technologies and gain innovation capabilities through a reliable and scalable infrastructure. By expanding our collaboration with Google Cloud and being the first to adopt the core technology provided by GCUL, we are helping community banks and credit unions explore new opportunities while continuing to maintain the relationships, services, and expertise that have always set them apart from others."
Jack Henry and Google Cloud established a strategic partnership in 2022 to accelerate the cloud-native technology modernization strategy of Jack Henry. Last June, the two companies announced plans to provide security capabilities driven by AI, integrating Google Cloud's proxy-based defense solutions to protect banks and credit unions from increasingly complex cyber threats. The integration with GCUL combines modern ledger technology with secure, scalable cloud infrastructure, helping financial institutions explore new digital assets and payment capabilities.
The main advantages of monetizing deposits through GCUL include:
- Deposition Retention and Growth:Help financial institutions retain deposit relationships while providing emerging digital payment and value transfer capabilities.
- 24/7 programmable user experience and near-real-time settlement:Provide terminal customers with instant, round-the-clock (24/7/365) payment execution, as well as automated, programmable workflows within an expanding network of institutional participants, currencies, and asset categories. Supports automated settlement processes and programmable payment workflows, thereby enhancing efficiency and flexibility.
- Seamless integration:Leverage the modern architecture of Jack Henry to simplify processes and reduce operational complexity.
- Reliable enterprise-level infrastructure:Combining the modern architecture of Jack Henry with the secure, scalable, and resilient distributed ledger infrastructure of Google Cloud to reduce operational friction and simplify adoption.
- Capital efficiency:Maximize capital efficiency through automatic clearing and multilateral netting settlement, without the need to occupy liquidity or pre-fund accounts, allowing institutions to expand their digital asset capabilities while fully retaining their core reserves and main deposit relationships.
Google Cloud Web3 and the Director of Digital Assets, James Tromans, state: "Financial innovation should be accessible to institutions of all sizes. Google Cloud Universal Ledger provides a secure and scalable foundation for programmable value exchange. Through collaboration with Jack Henry, we are bringing advanced digital asset capabilities to communities and regional financial institutions, helping them to continue developing on the basis of the relationships and trust they have established with their customers."
Regarding Jack Henry, Associates, and Inc.®
Jack Henry ® (Nasdaq ticker: JKHY) is a comprehensive fintech company dedicated to strengthening the connection between financial institutions and their clients. The company is a component of the S&P 500 index and places emphasis on openness, collaboration, and a user-centric approach, providing banks and credit unions with a vibrant ecosystem that includes both internally developed modern capabilities and support for integration with leading fintech companies. For over 50 years, Jack Henry has been offering technical solutions to help customers innovate more quickly, create strategic differentiation, and compete successfully, while meeting the ever-changing needs of account holders. Through people-oriented innovation, personalized services, and data-driven solutions, the company supports over 7,200 customers, helping to lower the barriers to achieving financial health. For more information, please visit www.jackhenry.com.
