State Street Expands Global Custody Business Through Acquisition
State Street's latest transaction demonstrates its strong commitment to further accelerating its growth in promising markets.
State Street and Mizuho Financial Group agreed for State Street to acquire Mizuho’s global custody and related businesses outside of Japan, according to a media release on Friday. These businesses support the overseas investments of Mizuho’s Japanese clients.
«This transaction demonstrates our strong commitment to further accelerating our growth in these markets,» said Stefan Gmür, head of Asia Pacific and head of Strategic Business Growth at State Street.
«With 35 years of experience on the ground in both Japan and Luxembourg and our long history in the US, State Street is well positioned to support Mizuho clients’ global growth and business transformation,» he added.
Expertise and Network
After this transaction, Mizuho will leverage its expertise and network as one of Japan’s largest financial institutions to continue providing Japanese clients with trust and custody services for their domestic assets and will collaborate with State Street for global custody and related services.
Mizuho currently operates its global custody and related business outside of Japan through its local subsidiaries Mizuho Trust & Banking (Luxembourg), owned by Mizuho Trust & Banking, and Mizuho Bank (USA), a wholly-owned subsidiary of Mizuho Bank.
Both of these entities represent combined assets under custody of approximately $580 billion and $24 billion in assets under administration. The transaction is expected to be completed by Q4 2025, subject to regulatory approvals and other closing conditions.
Increasingly Complex Investment Landscape
«In today's increasingly complex investment landscape, clients require global custody providers with significant scale and expertise,» said Tsutomu Yamamoto, senior executive officer, head of Global Transaction Banking Unit at Mizuho.
«After careful consideration, we have decided to transfer our global custody business to State Street, a recognized leader with a long-established presence in Japan. This strategic move will ensure our clients benefit from State Street's global platform and deep expertise,» he added.
