HSBC and B2B FinTech Tradeshift have formed a new joint venture focused on developing integrated financial solutions and financial services applications.

As part of the deal, HSBC will invest $35 million in Tradeshift in two phases and join its board of directors. The deal is part of a funding round that is expected to raise at least $70 million from HSBC and other investors.

The new joint venture will allow the bank and FinTech to deploy a range of digital solutions on Tradeshift and other platforms. It will also help Tradeshift expand its trade offering to businesses globally. Details on the joint venture will be announced ahead of its expected launch in early 2024.

“Enabling and growing global trade has been in HSBC’s DNA for almost 160 years. We are very excited to partner with Tradeshift to help businesses and their suppliers trade more smoothly using world-class technology and solutions that the joint venture will deliver.”

“This agreement supports our strategy of being a digital-first bank, which includes our commitment to partnering with FinTechs and embedding our solutions into the platforms of others.”

Barry O’Byrne, CEO of Global Commercial Banking at HSBC.

“The world’s biggest trade bank and the world’s largest trade network are joining forces. Our deepening partnership with HSBC delivers a strong foundation from which to scale and accelerate our vision of a trade network that creates economic opportunity for businesses everywhere.”

“HSBC’s reputation and global infrastructure bring instant credibility and broad appeal to any financial solutions brought to market through the Tradeshift platform. It is transformative, and it is a tremendous validation of the innovation and product architecture we have developed over the past decade.”

Christian Lanng, CEO and Co-founder of Tradeshift.

HSBC supports approximately 1.3 million businesses worldwide and is the world’s largest commercial bank, facilitating over $800 billion in annual trade flows. Tradeshift powers over $260 billion in gross merchandise value annually to one million business users on its platform.