Jack Henry, a financial technology provider serving more than 7,200 banks and credit unions, is expanding its partnership with Google Cloud to bring tokenised deposits to community and regional financial institutions through Google Cloud Universal Ledger (GCUL).

Under the expanded partnership, Jack Henry will become the first core banking technology provider to connect its systems to GCUL, a managed distributed ledger service designed to support the tokenisation and transfer of money and other assets. The platform enables real-time updates, round-the-clock settlement and programmable transactions.

The initiative aims to help smaller financial institutions respond to growing demand for faster, more automated financial services. Community banks and credit unions face increasing competition from larger banks and FinTech firms as customers expect more convenient digital payment options and services.

By integrating tokenised deposit capabilities into its technology ecosystem, Jack Henry intends to give its clients access to new transaction use cases, enhance their digital offerings and prepare for changing market demands.

The companies said the infrastructure could help institutions retain deposit relationships while introducing new digital payment and value-transfer services. Participating institutions could benefit from instant payments available at any time, alongside automated workflows across an expanding network of institutions, currencies and asset classes.

The integration is also designed to simplify adoption and reduce operational complexity, with Google Cloud providing the underlying ledger infrastructure. Automated clearing and multilateral netting could further improve capital efficiency by reducing the need for pre-funded accounts and locked-up liquidity, potentially allowing institutions to expand digital asset services while preserving access to core reserves.

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