HSBC’s new digital trade finance solution is NOT a blockchain

  • The bank’s new end-to-end digital trade finance tie up with Tradeshift, the cloud-based global commerce platform, aims to leverage hundreds of billions of dollars in working capital up and down supply chains – and it’s not being done using blockchains for a change.
  • Ramachandran said: “When we talk about supply chain financing or physical supply chain management, there have been multiple attempts by banks working with supply chain providers and you have a physical supply chain process then the data is pulled out of the physical supply chain process and sent through to a bank and the financing takes place.
  • “What we built with trade shift is the first genuinely integrated finance institution built into the physical supply chain.
  • The HSBC Tradeshift solution will stretch deep into the supply chain, “so unlike traditional programmes it’s not restricted to the larger suppliers.
  • It’s one of the largest constraints if you are a supplier and if you can build financing into that solution, you unlock the working capital potential in the supply chain.

HSBC does $1m of global trade per minute. The bank’s new end-to-end digital trade finance tie up with Tradeshift, the cloud-based global commerce platform, aims to leverage hundreds of billions of dollars in working capital up and down supply chains – and it’s not being done using blockchains
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