State Street Corporation has successfully completed the transfer of Mizuho Financial Group’s global custody business, which includes various offshore securities services outside of Japan. This strategic move involves taking over several of Mizuho’s operations, including global custody services and cross-border fund servicing for investments based in jurisdictions like the Cayman Islands, Bahamas, and Luxembourg. Additionally, State Street has acquired Mizuho’s European securities agency business along with sub-custodian and securities lending services offered in the United States.
The transition encompasses services that were previously managed under Mizuho Trust & Banking (Luxembourg) S.A. and Mizuho Bank (USA). Mizuho’s overseas investments, primarily held by clients in Japan, amount to approximately $580 billion in assets under custody, with an additional $24 billion in assets under administration.
Following the announcement of this transaction earlier in the year, there has been a concerted effort to ensure a smooth transition for Mizuho’s clients. The president of Investment Services at State Street emphasized the company’s commitment to innovation and client service as key reasons for Mizuho’s decision to partner with them. State Street plans to continue enhancing its service capabilities in the Japanese market, driven by the increasing demand for quality financial services.
Mizuho remains one of Japan’s most significant financial institutions and will continue to offer its clients trust and custody services for domestic assets. It is expected to collaborate closely with State Street for global custody and related services, thereby combining their strengths.
State Street has established a long-term presence in Japan, operating for over 35 years with a significant workforce in Tokyo and Fukuoka. The company offers a broad range of services to institutional investors in Japan, which include a comprehensive suite of solutions such as global custody, middle and back office outsourcing, and trading and financing options. Its operational center situated in Fukuoka has supported Japanese clients and those across the Asia Pacific region for over a decade.
In addition to its activities in Japan, State Street has also been present in Luxembourg for 35 years, providing essential services such as fund administration, custody, and transfer agency work. With its global headquarters in Boston, State Street operates in more than 100 markets worldwide, underscoring its extensive reach and capability in the financial services sector.
Overall, the successful completion of this transaction marks a significant step forward for State Street, enhancing its position and capabilities in both the Japanese and European markets. The deal reflects the growing trend of collaboration between financial institutions to optimize service delivery and ensure clients receive top-notch financial support for their investment needs.