How is Jiko as a Service different from working with a sponsor bank?

Most sponsor bank programs pool customer funds in a single “For Benefit Of” (FBO) account, where the bank sees one combined balance and the platform’s own ledger is often the only record of what each customer owns. This structure can create real challenges for platforms: the ledger must reconcile daily and faces growing regulatory scrutiny, and an issue with a single account can freeze the entire pool. Growth can also be limited, since the deposits a platform’s customers make typically land on the sponsor bank’s balance sheet, where capital requirements may cap how much the bank can hold and, in turn, how far the program can scale.

Jiko’s model eliminates the regulatory risks and scalability challenges of FBO-based offerings. Each customer’s funds are held in T-bills in their own name and never commingled, and because those funds sit off Jiko’s balance sheet, programs can scale without the capital limits that constrain traditional banks. Customers earn T-bill yield until the moment funds move, with full 24/7 payment capabilities through JikoNet, stablecoins, and debit cards.