Bank of New York Mellon Corp. (BNY Mellon) has approached Northern Trust Corp., a smaller rival valued at over $21 billion, to discuss a potential merger, according to multiple reports citing the Wall Street Journal. The initial talks are described as early, with no formal bid yet, but the deal could reshape the custodian bank landscape and create a financial services giant. Northern Trust has stated it is fully committed to remaining independent despite the reported interest from BNY Mellon. Following the news, Northern Trust's shares rose significantly, reflecting market speculation about the merger. Industry analysts note that this development has revived hopes for consolidation among large U.S. and regional banks, potentially sparking further exploratory conversations in the sector. Northern Trust's recent growth in assets under custody and administration, revenue, and client inflows has been supported by strong equity markets and a one-time gain from a Visa transaction.