Financial technology firm Jack Henry® has expanded its strategic partnership with Google Cloud to help community banks and credit unions provide their customers with tokenized deposits using Google Cloud Universal Ledger (GCUL).
As part of the expanded collaboration, Jack Henry will be the first core banking technology vendor to have native connectivity to GCUL. This achievement will empower community and regional banks and credit unions with programmable and continuous 24/7 settlement and digital assets infrastructure, allowing them to modernize their deposit offerings, generate novel payment flows and compete successfully with mega banks and non-bank fintechs.
Modernizing Deposit Infrastructure for Community and Regional Financial Institutions
With growing demands from business and retail accountholders for instant, programmable, and continuous financial services, community and regional financial institutions are finding themselves under pressure to innovate their settlement architecture, which still operates within constrained business hours and results in inefficient settlements and liquidity management.
Through embedding Google Cloud Universal Ledger in Jack Henry’s core technology stack, financial institutions will have the opportunity to launch tokenized deposits on secure, shared, real-time ledger without redeveloping existing infrastructure. It allows for automated 24/7 payment settlement across multiple asset classes and currencies while preserving key customer deposit relationships.
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Some of the key benefits and technology aspects that are delivered by GCUL include the following:
Deposit Holding and Portfolio Expansion: Assists regional banks in holding their deposit volumes by providing them with the latest digital means for money payments.
Non-stop 24/7/365 Programmable Payments: Provides end users with the capability of making immediate payments using the programmable system of payments in an ever-growing institutional participant base.
Capital & Liquidity Optimization: Optimizes the use of capital by automating the process of clearing and multilateral netting without having to fund accounts.
Cloud Integration: Makes use of Jack Henry‘s open architecture to facilitate easy and smooth integration for bank IT personnel.
Security & Compliance for Enterprises: Takes advantage of the banking know-how of Jack Henry in combination with the distributed ledger technology of Google Cloud.
Unfiltered Industry Statements and Executive Perspectives
“Tokenized deposits have the potential to reshape how money moves across the financial ecosystem,” said Jack Henry Chief Technology Officer Ben Metz. “Our strategy is centered on helping financial institutions navigate emerging technologies and access innovative capabilities through trusted, scalable infrastructure. By expanding our work with Google Cloud and serving as the first core technology provider to use GCUL, we’re helping community banks and credit unions explore new opportunities while building on the relationships, service, and expertise that have always set them apart.”
“Financial innovation should be accessible to institutions of all sizes,” said James Tromans, director, Web3 and Digital Assets at Google Cloud. “Google Cloud Universal Ledger provides a secure and scalable foundation for programmable value exchange. Through our collaboration with Jack Henry, we are bringing advanced digital asset capabilities to community and regional financial institutions, helping them build on the relationships and trust they have established with their customers.”
Furthering the Journey of Cloud Innovation
With the launch, this is yet another step towards realizing the strategic multi-year collaboration initiated by Jack Henry and Google Cloud back in 2022 to facilitate cloud-native architecture modernization at Jack Henry. Earlier, the two companies had joined hands to implement Google Cloud’s agentic security features into the platform to enhance its data security capabilities.
Through the tokenization of deposit systems along with core banking systems, Jack Henry and Google Cloud give financial institutions a realistic way to incorporate Web3 and digital asset functionalities.
