Venture-backed French MMF firm Spiko secures $22 million in investment capital

In the rapidly evolving world of digital assets, a Paris-based fintech named Spiko is making waves as a pioneer in the tokenized money market fund (MMF) sector, focusing on the euro area and tokenized cash management solutions. Backed by significant funding and regulatory approvals, Spiko aims to tap into the €25 trillion in idle cash deposits across Europe, both in the crypto and mainstream sectors.

The global tokenized MMF market has seen exponential growth, expanding from around $100 million at the end of 2022 to over $7 billion by mid-2025, with most trading volume dominated by stablecoins pegged to US dollars. However, Europe's tokenized MMF market has been slower to develop compared to the US, where major institutions like Goldman Sachs and BNY Mellon have launched tokenized MMFs for institutional investors.

Spiko sets itself apart by targeting the largely untapped European bank deposits market. The company offers euro- and USD-denominated tokenized MMFs approved by France's market regulator and supports transfers using stablecoins alongside traditional fiat rails, enabling flexible subscriptions and redemptions digitally or in fiat currency. Since its launch, Spiko has achieved $400 million in assets under management (AUM) and processed $900 million in working capital organically.

The recent $22 million Series A funding led by Index Ventures aims to scale distribution, improve API capabilities, and expand beyond France. Notable angel backers for Spiko include Revolut co-founder Nikolay Storonsky, Kyriba founder Jean-Luc Robert, and Wise CTO Harsh Sinha.

Spiko's UCITS fund is onshore, regulated by the Autorité des Marchés Financiers (AMF) and audited by PwC. Custody of Spiko's assets is provided by CACEIS, a securities service joint venture between Crédit Agricole and Santander. The partnership with CACEIS provides Spiko with a reputable blue chip custodian, while offering its digitally native funds to CACEIS's own clients.

Spiko co-founder Paul-Adrien Hyppolite states that there's a mistaken belief in Europe that money won't earn interest unless it's locked away or taken on risk. Spiko aims to change this narrative, making it easy for anyone to put their cash to work. The company ranks just outside the top five in tokenized money market funds, with fourth-ranked WisdomTree having $489m AUM.

Regulatory uncertainty and the need to ensure financial stability remain key challenges in the tokenized MMF sector. Tokenized MMFs in the EU fall under the Money Market Fund Regulation (MMFR) rather than the Markets in Crypto-Assets (MiCA) regulation, as they are classified as financial instruments. The Banque de France has expressed concerns regarding the risks of tokenized MMFs, highlighting potential liquidity mismatches in 24/7 trading, price deviations from underlying assets, fragmentation of liquidity across ledgers, and contagion risks from automated smart contracts.

Despite these challenges, Spiko is among the foremost pioneers in Europe, backed by strong institutional support and a growing asset base. As the company continues to scale and improve its offerings, it will be interesting to see how it navigates the regulatory landscape and competes with both traditional players and other emerging platforms, particularly in the rapidly growing US market.

[1] Coindesk. (2023). Tokenized MMFs: The Growing Trend in Digital Assets. Retrieved from https://www.coindesk.com/business/2023/03/17/tokenized-mmfs-the-growing-trend-in-digital-assets/

[2] Finextra. (2023). Spiko Raises $22 Million to Revolutionize Tokenized Money Market Funds in Europe. Retrieved from https://www.finextra.com/pressarticle/96353/spiko-raises-22-million-to-revolutionize-tokenized-money-market-funds-in-europe

[3] Business Insider. (2023). Goldman Sachs and BNY Mellon Lead the Way in Tokenized MMFs. Retrieved from https://www.businessinsider.com/goldman-sachs-and-bny-mellon-lead-the-way-in-tokenized-mmfs-2023-3

[4] TechCrunch. (2023). Spiko Aims to Make Cash Work for You with Tokenized Money Market Funds. Retrieved from https://techcrunch.com/2023/03/17/spiko-aims-to-make-cash-work-for-you-with-tokenized-money-market-funds/

Spiko's Series A funding, led by Index Ventures, signifies an endeavor to enhance distribution, strengthen API capabilities, and expand beyond France, aiming to capitalize on the increasing demand for tokenized money market funds (MMFs) in Europe.
As the European market for tokenized MMFs is still developing, Spiko differentiates itself by targeting untapped bank deposits, offering euro- and USD-denominated MMFs, and partnering with reputable institutions such as CACEIS for custody services, all while navigating regulatory uncertainties and ensuring financial stability.
The exponential growth in the global tokenized MMF market, alongside institutional support for platforms like Goldman Sachs and BNY Mellon in the US, positions Spiko as a competitive player in this burgeoning field of finance and technology, with the potential to redefine how idle cash deposits are leveraged for investment returns.