HSBC and Tradeshift Launch Joint Venture for Embedded Finance Solutions

On August 1, 2023, HSBC and B2B fintech Tradeshift announced plans for a new joint venture focused on embedded finance solutions. HSBC invested $35 million in Tradeshift in two stages, as part of a broader funding round targeting at least $70 million from HSBC and other investors, with HSBC joining Tradeshift's board of directors. The venture will develop financial services apps that integrate payment and fintech capabilities directly into trade, e-commerce, and marketplace platforms.

Tradeshift's existing global commerce network already supports over $260 billion in annual gross merchandise value across one million users. Tradeshift CEO Christian Lanng described the partnership as combining 'the world's biggest trade bank and the world's largest trade network' to deliver credibility and scalability. A full launch of the joint venture was planned for early 2024, with additional details to follow.

The deal represents a major move by a global banking institution to embed financial products at the point of B2B commerce.