Jack Henry makes bitcoin play

Jack Henry & Associates Inc. (Nasdaq: JKHY) is betting on bitcoin with a new service for its commercial customers.

The Monett-based financial software firm announced in a news release yesterday a partnership with New York Digital Investment Group LLC, a bitcoin technology and financial services solutions firm.

The initiative allows Jack Henry's bank and credit union customers to make bitcoin more accessible for accountholders.

"It's important for financial institutions to be at the center of financial transactions, and our work with NYDIG is a great example of how we can collaborate to make this a reality," said Julie Morlan, senior managing director of digital solutions at Jack Henry, in the release. "Our relationship with NYDIG helps more banks and credit unions meet today's modern payment demands. It supports our mission of equipping financial institutions with optionality and access to a broader financial ecosystem, maintaining first-app status for consumers' financial needs."

Rahm McDaniel, head of banking solutions at NYDIG, added in the release that the partnership “marks an important step toward making bitcoin services more obtainable for both financial institutions and their accountholders."

NYDIG's website indicates the company "delivers bitcoin products across industries, from banking and insurance to fintech and nonprofits. We fuse stringent regulatory standards with ironclad technology to make bitcoin universal."

Through Jack Henry's Banno Digital Platform, JHA PayCenter will facilitate payments to and from NYDIG, according to the release. Bitcoin services available may include automated savings and fractional investing options for accountholders.

Earlier this month, Jack Henry reported fiscal third quarter profits of $84.7 million, up from $71.4 million a year earlier.

JKHY shares were trading at $177.11 as of 11:51 a.m., compared with a 52-week range of $147.50 to $205.37 per share.