(Bloomberg) -- BlackRock, the world's largest asset manager, said it plans to move $1 trillion in custodial and fund services for client assets to JPMorgan Chase from State Street.

BlackRock is making the move to lower costs for clients, the company said in an e-mailed statement Wednesday.

"Many of BlackRock's clients will experience cost savings through decreased operating expenses at the fund level," Derek Stein, senior managing director and head of business operations and technology at BlackRock, said in the statement.

JPMorgan expects to on-board the assets over the next two years, the company said in a statement Wednesday. The New York-based bank had $20.5 trillion in assets under custody at the end of 2016, according to its latest earnings report.

State Street had assets under custody and administration of $28.8 trillion as of the fourth quarter last year, the Boston-based custodial bank reported Wednesday. It said in a presentation Wednesday that it would remain a service provider to BlackRock even after the move.

Custody banks keep records, track performance and lend securities for institutional investors. The banks also manage money for individuals and institutions.

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