Jack Henry has expanded its Google Cloud collaboration to help banks and credit unions offer tokenized deposits through Google Cloud Universal Ledger, or GCUL.
Announced on October 16, the integration will make Jack Henry the first core banking technology provider to connect with GCUL. The fully managed distributed ledger supports tokenizing and transferring money and assets on a shared real-time record, including programmable settlement around the clock.
The companies say the infrastructure can support near-real-time payments, automated workflows, clearing and multilateral netting. Jack Henry says netting can improve capital efficiency without tying up liquidity in prefunded accounts.
“Financial innovation should be accessible to institutions of all sizes,” said James Tromans, director of Web3 and Digital Assets at Google Cloud.
The initiative builds on a strategic relationship established in 2022 and a subsequent collaboration on AI-driven security. Jack Henry serves more than 7,200 clients. The release does not announce a commercial launch date.
Digital Trade Outlook’s View
For smaller banks, integration through a core provider could lower the technical barrier to experimenting with tokenized deposits. Commercial value will depend on the participating network, usable payment corridors and demand from depositors. Programmability alone does not guarantee lower settlement costs or additional deposits.
Image: Jack Henry.