(Bloomberg) -- Royal Bank of Canada, the country’s largest lender, is exploring strategic options for its European custody business including a potential sale, people with knowledge of the matter said. 

RBC’s investment bank is managing the review and is in the early stages of gauging interest from potential buyers, said the people, who asked not to be identified because the information is private. 

The business could draw interest from other custodial firms as well as asset managers and private equity funds, the people said. Any deal would likely value the unit at well above 1 billion euros ($1 billion), according to the people.

The European custodial business, formerly known as RBC Dexia Investor Services Ltd., was previously a joint venture with Banque Internationale a Luxembourg SA. RBC bought out its partner’s 50% stake in 2012 for C$1.1 billion ($842 million). 

RBC’s global custodial business has C$4.4 trillion under administration and competes with companies such as State Street Corp. These firms serve an important regulatory function in the investment industry, helping keep assets safe for financial institutions’ clients and charging a small percentage fee for their services.

Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. A spokesperson for RBC declined to comment. 

©2022 Bloomberg L.P.