The China-backed Asian Infrastructure Investment Bank (AIIB) has signed up BNP Paribas to be its global custodian. BNP Paribas will be in charge of about US$20 billion of assets, providing a suite of custody services, covering master custody services and other value-added services.

AIIB chose BNP Paribas out of eight banks involved in the bidding process to be AIIB’s global custodian. Thierry De Longuemar, AIIB’s vice president and CFO, speaking to Bloomberg news, said that BNP Paribas was chosen because of their global footprint, that the AIIB may extend beyond the US$20 billion in the future, and that they may consider appointing other custodians for specific needs, such as for local currency assets.

The deal comes shortly after China’s Belt and Road Forum in Beijing earlier this month, in which the AIIB president Jin Liqun stressed the bank’s role beyond the Belt Road initiative, despite the view that the bank was created to bolster Belt Road projects.

Also earlier this month, the Asian Development Bank (ADB) held their annual meeting in Yokohama. Although the AIIB and ADB are seen as competitors, at a press conference in Yokohama, ADB President Takehiko Nakao also spoke about the close cooperation with the AIIB, and said that the vast infrastructure requirements across Asia will necessitate working together. The ADB estimates that US$26 trillion will be needed in infrastructure spending through to 2030.