State Street Corporation (NYSE:STT) and Mizuho Financial Group, Inc. today announced they have entered into an agreement for State Street to acquire Mizuho’s global custody and related businesses outside of Japan.

These businesses support the overseas investments of Mizuho’s Japanese clients.

Mizuho currently operates its global custody and related business outside of Japan through its local subsidiaries Mizuho Trust & Banking (Luxembourg) S.A., owned by Mizuho Trust & Banking Co., Ltd., and Mizuho Bank (USA), a wholly-owned subsidiary of Mizuho Bank, Ltd. Both of these entities represent combined assets under custody of approximately US$580 billion and US$24 billion in assets under administration.

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.

“Japan, Luxembourg and the United States are all important markets to State Street. 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. “Mizuho’s decision to entrust State Street with their valued clients affirms their confidence in our high-quality client service, industry-leading capabilities and commitment to product innovation and technology investment. With 35 years of experience on the ground in both Japan and Luxembourg, and our long history in the United States, State Street is well positioned to support Mizuho clients’ global growth and business transformation.”

“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.”

“Having deep familiarity with the requirements and expectations of Japanese institutional investors, we look forward to meeting their needs not only in global custody but also data management, risk and performance analytics, currency management and securities finance,” said Hiroshi Kobayashi, head of Japan at State Street. “We expect to provide a seamless transition for Mizuho’s clients. As the acquired business integrates into our global operating model, we expect the added scale will allow us to further expand our technology and service capabilities, which will enhance the service experience for our existing and new clients in Japan.”

The transaction is expected to be completed by Q4 2025, subject to the regulatory approvals and other closing conditions.

State Street established its business in Japan more than 35 years ago. With an experienced team of more than 500 employees in Japan, split between locations in Tokyo and Fukuoka, State Street provides Japanese institutional investors with a comprehensive suite of services including trust, global custody, middle/back office outsourcing, data management, trading and financing solutions. State Street has an operational centre of excellence in Fukuoka which has been supporting clients in Japan and across Asia Pacific for over a decade.

State Street has been present in Luxembourg for 35 years providing services including fund administration, custody and transfer agency.

From its headquarters in Boston, Massachusetts, State Street operates globally in more than 100 geographic markets.