State Street picks Deutsche Bank as T2S custody partner

State Street will use Deutsche Bank's Settlement Hub to directly access and provide custody services in core T2S markets.
By Joe Parsons

State Street will use Deutsche Bank’s TARGET2 Securities (T2S) custody services for certain European markets, in another major custodian partnership for the German bank. 

The Boston-based global custodian will use Deutsche Bank’s Settlement Hub in Frankfurt to provide full custody services in core T2S markets, in addition to its own direct connectivity model. 

“Each client has a different T2S strategy and our modular solutions provide clients with the flexibility to select service models that best suit their business needs,” said Joseph Barnes, head of securities services for the Americas, Deutsche Bank. 

“Our Settlement Hub solution provides State Street with the in-market expertise they value while streamlining trade processing via a single legal and technical access point.”

State Street has already developed its own self-custody capabilities in certain T2S markets, however the partnersnhip with Deutsche Bank will allow it to process larger volumes in Europe. 

This is the third major deal for Deutsche Bank and its T2S platform, with RBC Investor and Treasury Services (RBC I&TS) and Northern Trust awarding the German bank T2S asset servicing mandates.

The Deutsche Bank Settlement Hub is one of the only standalone platforms to directly connect with T2S, with other market infrastructures and banks opting for collaborative models. 

Citi and Clearstream last year launched a joint T2S hub to enable banks and broker-dealers to access the pan-European securities settlement platform, with UBS as its first client.