HSBC, a renowned global bank with a legacy of nearly 160 years in enabling international trade, has joined hands with B2B fintech leader Tradeshift in a groundbreaking joint venture. This strategic alliance aims to spearhead the development of cutting-edge embedded finance solutions and financial services applications, revolutionizing the world of trade and commerce.

The collaboration commences with a substantial investment from HSBC, injecting $35 million into Tradeshift in two stages. As a testament to the strength of their partnership, HSBC will also secure a seat on Tradeshift’s board. To further fuel their vision, both entities are committed to raising a minimum of $70 million from HSBC and other investors through an upcoming funding round.

The joint venture is set to unleash a wave of digital innovations across Tradeshift’s fintech platforms and beyond. This collaborative effort will seamlessly integrate payment and fintech services into the fabric of trade, e-commerce, and marketplace experiences, amplifying Tradeshift’s business commerce proposition on a global scale.

While the finer details of this transformative endeavour will be unveiled ahead of its scheduled launch in early 2024, HSBC’s CEO of Global Commercial Banking, Barry O’Byrne, emphasizes that this agreement underscores the bank’s unwavering commitment to its digital-first strategy. By partnering with fintech disruptors like Tradeshift and embedding their solutions into external platforms, HSBC is embracing the future of banking with a focus on enhanced user experiences and streamlined operations.

For Christian Lanng, CEO, and co-founder of Tradeshift, this partnership marks a pivotal moment as the world’s largest trade bank collaborates with the world’s largest trade network. This strategic fusion establishes a robust foundation, empowering Tradeshift to accelerate its vision of a trade network that fosters economic opportunities for businesses worldwide.

HSBC’s extensive global support for approximately 1.3 million businesses and its facilitation of over $800 billion in annual trade flows solidify its position as a prominent force in international commerce. Similarly, Tradeshift’s impressive platform boasts support for over $260 billion of gross merchandise value annually, with a million business users benefitting from its transformative solutions.

As this visionary partnership takes centre stage, the financial landscape anticipates a paradigm shift in global trade. The collaboration bridges the chasm between traditional banking expertise and fintech innovation, embracing the best of both worlds to empower businesses with enhanced financial capabilities and frictionless transactional experiences. The joint venture’s imminent launch heralds a new era for trade and commerce, one where seamless digital solutions will redefine the way businesses operate on a global scale.

In the forthcoming years, the HSBC-Tradeshift partnership will undoubtedly leave an indelible mark on the global financial landscape. With their combined expertise and unwavering commitment to driving innovation, this transformative alliance holds the promise of shaping a new future for trade—one that thrives on cutting-edge technology and fosters boundless opportunities for businesses everywhere.