Spiko Secures $22 Million to Innovate Money Market Funds

Spiko, a platform for tokenized money market funds, has successfully secured $22 million in Series A funding led by Index Ventures, with contributions from White Star Capital, Frst, Rerail, Bpifrance, and Blockwall. Notable angel investors such as Nikolay Storonsky (Revolut co-founder), Jean-Luc Robert (Kyriba founder), Zach Abrams (Bridge co-founder), Harsh Sinha (Wise CTO), Lionel Assant (Blackstone co-CIO), and the founding team of Pennylane also participated in this funding round. According to Spiko, approximately $25 trillion in European bank deposits remain inactive, losing out on potential yields and efficiency, unlike in the U.S., where businesses often earn interest on cash while maintaining liquidity. To address this issue, Spiko aims to close the cash yield gap by providing businesses with daily interest without requiring lock-ups, positioning itself as Europe's first tokenized money market fund. "In Europe, many believe they cannot earn interest on their money without locking it away or taking risks," stated Spiko co-founder Paul-Adrien Hyppolite. "However, as long as central bank rates remain positive, keeping idle cash means missing out on returns that U.S. businesses receive. With Spiko, we're revolutionizing this space by simplifying cash utilization." Founded by Hyppolite and Antoine Michon, both former French government officials with experience at Palantir, Spiko has processed over $900 million in working capital across more than 1,000 businesses within its first year. Their goal is to enhance distribution through strategic partnerships with firms like Memo Bank and Fygr, aiming for $1 billion in assets under management by the end of 2025. Julia Andre, a partner at Index Ventures, highlighted, "Spiko is tapping into a substantial market opportunity in treasury management and using their tokenized fund infrastructure to access new liquidity pools through innovative distribution. Their product has already resonated well with European customers, and we are excited about their plans for extensive growth." With the recent funding, Spiko plans to boost its growth in Europe by investing in sales, marketing, product development, and acquiring partnerships while preparing for future U.S. expansion. How does Spiko's platform operate? Spiko utilizes various blockchains, including Ethereum, Arbitrum, and Polygon, to tokenize money market funds, making them more accessible to smaller businesses typically ignored by traditional banks. By acting as a transfer agent on a blockchain ledger, Spiko removes the need for traditional custodians and intermediaries, reducing costs and enabling global cash-equivalent transfers around the clock. Their funds invest in highly liquid, low-risk assets, such as Eurozone and U.S. Treasury bills, firmly backed by sovereign guarantees and linked to central bank rates. Spiko's setup also accommodates stablecoin transfers as an alternative to wire payments, allowing customers to transition funds smoothly between digital currencies and fiat.