Tokenized money market fund platform Spiko has announced raising $22 million in Series A funding led by Index Ventures, with participation from White Star Capital, Frst, Rerail, Bpifrance, and Blockwall. Notable angel investors, including Revolut co-founder Nikolay Storonsky, Kyriba founder Jean-Luc Robert, Bridge co-founder Zach Abrams, Wise CTO Harsh Sinha, Blackstone co-CIO Lionel Assant, and Pennylane's founding team, also participated in the round, according to a statement shared with The Block. About $25 trillion in European bank deposits sit idle, according to Spiko, missing out on yields and capital efficiency, unlike in the U.S., where businesses routinely earn interest on cash without sacrificing liquidity. Growing demand for better cash optimization is now pushing European firms to diversify deposits, the AMF-regulated fintech said. Spiko aims to close that cash yield gap with the U.S. by offering businesses daily interest without lock-ups through what it describes as Europe's first tokenized money market funds. "In Europe, there's a mistaken belief that your money won't earn interest unless you lock it away or take on risk," Spiko co-founder Paul-Adrien Hyppolite said. "But as long as central bank rates are above zero, sitting on idle cash means European businesses are missing out on returns that U.S. competitors routinely receive. With Spiko, we're changing the game by making it easy for anyone to put their cash to work." Spiko was founded by Hyppolite and Antoine Michon, former French Treasury and government officials with experience at Palantir. In its first year, the nine-person startup claims to have processed over $900 million of working capital from more than 1,000 businesses. It plans to ramp up distribution through strategic partnerships with companies like Memo Bank and Fygr, and projects to reach $1 billion in assets under management by the end of 2025. "Spiko is going after a vast opportunity in treasury management and leveraging their tokenized fund infrastructure to unlock new pools of liquidity through innovative distribution," Julia Andre, partner at Index Ventures, the global VC firm that backed Robinhood, Bridge, and Revolut, said. "Their initial product resonates strongly with customers in Europe, and we're excited about their vision to tap into huge distribution channels with an expansive product offering over time." With the fresh capital in place, Spiko intends to use the funds to fuel growth in Europe through investment in sales, marketing, product development, and partnership acquisitions, while laying the groundwork for future U.S. expansion. Spiko leverages blockchains, including Ethereum, Arbitrum, and Polygon, to tokenize money market funds and make them more accessible to smaller businesses often overlooked by traditional banks. Acting as a transfer agent on a blockchain ledger, Spiko eliminates legacy custodians and intermediaries, cutting costs and enabling 24/7 cash-equivalent transfers globally. Its funds invest in highly liquid, low-risk assets, such as Eurozone and U.S. Treasury bills, backed by sovereign guarantees and tied to central bank rates. Spiko's architecture also supports stablecoin transfers as an alternative to wire payments, letting customers move funds seamlessly between digital currencies and fiat. [The Block]