Spiko has revolutionized European cash management by creating the first tokenized money market funds approved by France’s Financial Markets Authority, reaching $400 million in assets under management within just 12 months. This Innovation and Tech article examines how fintech uses blockchain infrastructure to provide daily interest on idle cash through Treasury Bill-backed funds, addressing Europe’s $25 trillion cash yield gap compared to US markets.
Summary: Spiko operates two AMF-regulated tokenized funds (EUTBL and USTBL) that invest exclusively in Treasury Bills, offering daily liquidity with 0.25% annual fees and minimum deposits of €1,000. The platform processes stablecoin deposits and enables 24/7 cross-chain transfers through Chainlink integration.
How Spiko’s Tokenized Money Market Funds Work
Spiko uses tokenization to unlock demand from a large group of smaller businesses that traditional banks tend to overlook, creating Europe’s first fully tokenized money market fund registry. The platform operates two regulated funds that invest exclusively in government-issued Treasury Bills.
Core Fund Structure:
- Spiko Euro (EUTBL): Invests in Treasury Bills from top Eurozone countries like Germany and France
- Spiko Dollar (USTBL): Invests exclusively in US Treasury Bills guaranteed by the federal government
By acting as a transfer agent on a blockchain ledger – something usually handled by legacy custodians – Spiko cuts out the middlemen and reduces the cost of managing funds, enabling more efficient operations than traditional fund structures.
The tokenized shares trade 24/7 on blockchain networks including Ethereum, Arbitrum, and Polygon, providing unprecedented flexibility for money market fund access. Users can deposit through traditional bank transfers or stablecoins, with automatic conversion between fiat and digital currencies.
Platform Performance and Market Adoption
Spiko has achieved remarkable organic growth without dedicated sales efforts. Just a year after its launch, Spiko already has over €344 million in AUM, with more than €775 million in working capital from over 1,000 businesses having been processed through the platform.
Growth Metrics:
- Assets Under Management: $400 million (achieved in 12 months)
- Processed Volume: Over $900 million from 1,000+ businesses
- Projected 2025 AUM: $1 billion
- Distribution Partners: Memo Bank, Fygr
The platform targets a massive opportunity, as €21.5 trillion sits idly in European bank deposits, missing out on yields, capital efficiency, and essential capital protection. This contrasts sharply with US markets where businesses routinely earn interest on cash holdings without sacrificing liquidity.
Regulatory Framework and Safety Features
AMF Approval and Compliance
Spiko operates under strict French Financial Markets Authority supervision, ensuring institutional-grade safety standards. Both funds maintain regulatory compliance as short-term variable net asset value money market funds under EU law.
Regulatory Safeguards:
- Custodian: CACEIS Bank (subsidiary of Crédit Agricole Group)
- Sub-custodian: BNY Mellon for US Treasury Bills
- Settlement: JPMorgan Chase for USD transfers
- Auditing: PwC conducts quarterly audits
- Portfolio Management: Twenty-First Capital handles Treasury Bill trading
The funds maintain a weighted average maturity under 60 days with a maximum asset maturity of 6 months, meeting strict EU money market fund requirements for liquidity and safety.
Risk Assessment and Capital Protection
The underlying assets in Spiko’s main funds consist of Treasury Bills – short-term debt securities issued by major Eurozone governments or the U.S. Treasury that are always open for trading. These assets offer sovereign guarantee backing, considered safer than traditional bank deposits since governments are statistically less likely to default than commercial banks.
Capital Protection Features:
- Sovereign guarantee backing from investment-grade governments
- Daily liquidity without lock-up periods or penalties
- Automatic interest reinvestment increases share value
- Real-time NAV reporting through Chainlink SmartData integration
Technical Infrastructure and Blockchain Integration
Chainlink CCIP Integration
Spiko is tapping into Chainlink’s cross-chain interoperability protocol to enable multichain access to over $380 million in regulated on-chain funds. This integration solves a critical user experience problem where investors previously couldn’t transfer fund shares between blockchain networks.
The Chainlink CCIP implementation enables seamless cross-chain fund transfers while maintaining regulatory compliance and operational standards required by institutional investors. Users can now move tokenized fund shares between Ethereum, Arbitrum, and Polygon without redemption and resubscription processes.
Stablecoin and Fiat Integration
Spiko’s tokenized architecture supports both traditional banking rails and digital asset infrastructure. Users can deposit euros into USD funds or withdraw euros from dollar-denominated positions using Bloomberg’s BFIX exchange rate without conversion fees.
The platform processes stablecoin deposits and withdrawals, offering an alternative to traditional wire transfers with 24/7 availability. This hybrid approach bridges traditional finance and DeFi ecosystems while maintaining full regulatory compliance.
Investment Process and Fee Structure
Account Setup and Minimums
Opening a Spiko account requires identity verification and takes approximately 5 minutes. The platform offers both individual and corporate accounts with segregated fund management capabilities.
Investment Requirements:
- Minimum initial deposit: €1,000 or $1,000
- Subsequent deposits: €1 or $1 minimum
- No maximum investment limits
- Daily deposit and withdrawal processing (orders before 10:30 AM CET)
Transparent Fee Structure
| Fee Type | Spiko Euro | Spiko Dollar |
|---|---|---|
| Annual Management Fee | 0.25% | 0.25% |
| Deposit Fees | 0% | 0% |
| Withdrawal Fees | 0% | 0% |
| Currency Conversion | 0% (BFIX rate) | 0% (BFIX rate) |
Management fees are deducted daily on a pro-rata basis from accrued interest, ensuring displayed returns are always net of all charges with no hidden costs.
Series A Funding and Strategic Partnerships
Spiko recently completed a $22 million Series A funding round led by Index Ventures, with participation from White Star Capital, Frst, Rerail, Blockwall, and Bpifrance’s Digital Venture Fund. The round attracted notable angel investors including Revolut co-founder Nikolay Storonsky and Wise CTO Harsh Sinha.
Julia Andre, partner at Index Ventures commented: “Spiko is going after a vast opportunity in treasury management and leveraging their tokenised fund infrastructure to unlock new pools of liquidity through innovative distribution”.
The funding will accelerate European expansion through sales, marketing, product development, and strategic partnership acquisitions. Spiko has already established partnerships with fintech companies Fygr and Memo Bank to distribute its products through their customer bases.
Competitive Analysis and Market Position
Advantages Over Traditional Solutions
vs. Bank Current Accounts:
- Daily interest earning vs. zero yields
- Same-day liquidity without notice periods
- Higher returns aligned with central bank rates
vs. Term Deposits:
- No lock-up periods or early withdrawal penalties
- Daily access to funds without restrictions
- Competitive yields without sacrificing liquidity
vs. Other Money Market Funds:
- 24/7 blockchain-based transfers
- Stablecoin deposit and withdrawal options
- Lower operational costs through tokenization
Competitive Positioning
Spiko faces competition from traditional money market fund providers like BlackRock and Vanguard, though these lack tokenized infrastructure and blockchain integration. The platform competes with emerging tokenized fund providers but maintains first-mover advantage in EU-regulated tokenized money market funds.
The nine-person team, led by co-founders Paul-Adrien Hyppolite (former Treasury economist) and Antoine Michon (former government digital transformation advisor), brings unique regulatory expertise and government connections that facilitated AMF approval.
FAQ: Spiko Investment Guide
What makes Spiko funds different from bank deposits? Spiko funds invest in Treasury Bills offering daily interest aligned with central bank rates, while bank deposits typically earn zero yield. Funds provide same-day liquidity without compromising returns.
How safe are Spiko’s tokenized money market funds? Funds are AMF-regulated with assets held by CACEIS Bank and backed by sovereign guarantees from investment-grade governments. Treasury Bills are considered safer than bank deposits due to government backing.
Can I withdraw funds immediately? Yes, withdrawal orders placed before 10:30 AM CET on business days are processed the same day for EUR (SEPA) and within 0-2 business days for USD transfers.
What blockchain networks support Spiko tokens? Spiko funds operate on Ethereum, Arbitrum, and Polygon networks with Chainlink CCIP enabling cross-chain transfers between networks.
Are there tax implications for Spiko investments? For French tax residents, only realized capital gains (withdrawals) are taxable. Non-French residents are exempt from French taxation but must comply with local tax regulations.
How does Spiko’s tokenization benefit investors? Tokenization enables 24/7 fund transfers, stablecoin integration, reduced operational costs, and seamless cross-chain accessibility while maintaining full regulatory compliance.
What are the main risks of investing in Spiko funds? Primary risks include government default (though Treasury Bills are considered risk-free), interest rate fluctuations affecting yields, and potential regulatory changes affecting tokenized fund operations.
How does Spiko compare to traditional money market funds? Spiko offers similar safety and returns but with superior accessibility through blockchain infrastructure, lower fees due to reduced operational costs, and innovative deposit/withdrawal options, including stablecoins.
Key Takeaways
- Spiko operates Europe’s first AMF-approved tokenized money market funds with $400 million AUM achieved through organic growth in just 12 months
- The platform addresses Europe’s $25 trillion cash yield gap by providing daily interest on Treasury Bill-backed funds without lock-up periods
- Blockchain integration through Chainlink CCIP enables 24/7 cross-chain transfers and stablecoin compatibility while maintaining full regulatory compliance
- Strong institutional backing from Index Ventures and strategic partnerships position Spiko for European expansion, targeting $1 billion AUM by end-2025
- Transparent fee structure at 0.25% annually with no deposit, withdrawal, or currency conversion fees makes it cost-competitive with traditional alternatives
Spiko represents a significant innovation in European cash management by successfully tokenizing regulated money market funds while maintaining institutional-grade safety standards. The platform’s rapid growth and regulatory approval demonstrate strong market demand for blockchain-enabled financial infrastructure that bridges traditional finance and digital assets.
Owen
