“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, in a press statement on Friday 28 February 2025. Photo: State Street

“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, in a press statement on Friday 28 February 2025. Photo: State Street

Luxembourg will play a critical role in State Street’s takeover of Mizuho’s global custody business, a deal involving $580bn in assets under custody and expected to close by Q4 2025.

State Street Corporation will acquire Mizuho Financial Group’s global custody and related businesses outside Japan, significantly expanding its presence in Luxembourg, where a large share of the assets under custody and administration are held. The transaction, on Friday 28 February 2025, was expected to close by Q4 2025, subject to regulatory approvals and other closing conditions.

Mizuho Trust & Banking (Luxembourg) SA and Mizuho Bank (USA), which operated Mizuho’s global custody services outside Japan, together represent approximately $580bn in assets under custody and $24bn in assets under administration. Luxembourg played a critical role in this transaction, given its status as a key financial hub for investment services.

Stefan Gmür, head of Asia Pacific and head of strategic business growth at State Street, stated that Japan, Luxembourg and the United States were all important markets for the company. He added that the acquisition reinforced State Street’s commitment to growth in these regions. He emphasised the firm’s 35 years of experience in both Japan and Luxembourg, highlighting its ability to support Mizuho clients’ global expansion.

Mizuho’s decision to divest its global custody business followed an assessment of market needs. Tsutomu Yamamoto, senior executive officer and head of global transaction banking unit at Mizuho, stated that the increasing complexity of the investment landscape necessitated custody providers with significant scale and expertise. He explained that after careful consideration, Mizuho had selected State Street due to its long-established presence in Japan and its global capabilities.

Hiroshi Kobayashi, head of Japan at State Street, remarked that the firm’s familiarity with Japanese institutional investors positioned it to meet their needs beyond global custody. He expected the additional scale from the acquisition to enhance State Street’s technology and service capabilities, benefiting both existing and new clients in Japan.

Following the completion of the transaction, Mizuho plans to focus on domestic trust and custody services while collaborating with State Street for global custody. The deal reflects a shift in Mizuho’s strategy, allowing it to concentrate on its core financial services while leveraging State Street’s expertise for its clients’ overseas investments.

Related articles