State Street and SS&C Technologies are restructuring their transfer agency operations in Luxembourg and Ireland by dismantling their International Financial Data Services LP (IFDS) joint venture after nearly 20 years, as the industry is streamlining interaction between distributors and investors thanks to automation and blockchain-driven solutions.
Under the plan announced Tuesday, State Street will absorb IFDS’s transfer agency services for its clients, while SS&C will take full control of its existing transfer agency operations, rebranding them under its Global Investor & Distribution Solutions (GIDS) division. State Street already brought the operations part of its Irish transfer agency activities ‘inhouse’ from IFDS in 2021.
The transition, set to be completed in the second half of 2025, will not affect IFDS Canada, which remains part of the firms’ North American business.
Seen as $24.2 billion market by 2033
The decision comes as technology transforms the transfer agency market, valued at 16.32 billion dollars in 2024 and expected to reach 24.23 billion dollars by 2033. Transfer agents, which handle fund administration, investor record-keeping, and transaction processing, are increasingly adopting AI, automation, and blockchain to streamline traditionally labour-intensive processes.
State Street, which has long been Luxembourg’s largest transfer agency provider, overseeing 1.06 trillion euro in assets, according to Monterey Research Insights, said the restructuring will improve operational efficiency and client service.
“This decision will simplify our operating model and enhance the transfer agency experience for our clients,” said Donna Milrod, chief product officer at State Street, in a statement.
Neither firm has disclosed the precise reasons for unwinding their IFDS cooperation in Ireland and Luxembourg, though both have pledged to retain existing teams and ensure a seamless transition for clients.
“We remain committed to providing clients with leading global transfer agency technology and solutions,” said Nick Wright, global head of SS&C GIDS.
Transfer agency evolution
Industry specialists expect blockchain technology to fundamentally reshape transfer agency services, improving scalability, security, and efficiency in global asset servicing and fund administration.
Chris Ryder, a digital assets specialist at WisdomTree, who introduced a digital transfer agent at the firm, believes blockchain will drive a major shift in the sector.
“Integrating blockchain technology with transfer agent functions is a logical progression, given that both share similar objectives,” he wrote in a May 2024 paper published on the ETF provider’s website.
Blockchain’s immutable ledger simplifies ownership records and transaction tracking, reducing manual processes and errors while enhancing transparency and regulatory oversight. Ryder said that as automation and decentralised solutions gain traction, transfer agencies will need to adapt to a rapidly changing landscape.
Simpler interaction between distributors and investors
State Street, answering emailed questions from Investment Officer, said it sees transfer agency activities as a “core service in our bundled offering” and said it is obervering several trends, including simplifying interaction between distributors and investors, the emergence of dedicated service desks to support clients’ distribution efforts, and improving the digital experience of clients in a way that is similar to the ongoing revolution in retail banking.
“We are embracing digitization across key aspects of the Transfer Agency value chain, and including our digital platform that digitizes the investor onboarding protocols coupled with our global, high-touch service model,” State Street responeded. “We are confident that we are well prepared to support our clients and the evolving Transfer Agency marketplace by embracing blockchain, new digital practices and the emergence of semi-liquid products through automation, standardization and digitization.”