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Funding Secured: Germany's Credibur Gathers $2.2M to Develop a Credit Foundation System

European fintech company Spiko secures $22 million investment to enable Small and Medium Enterprises (SMEs) across Europe to earn interest on their idle funds by investing in digital government securities.

Funding secured for Credibur, a German company, to develop credit infrastructure platform,...
Funding secured for Credibur, a German company, to develop credit infrastructure platform, amounting to $2.2 million.

Funding Secured: Germany's Credibur Gathers $2.2M to Develop a Credit Foundation System

**Paris-Based Fintech Spiko Simplifies Access to Government Securities for European SMEs**

In a significant move for the European financial landscape, Paris-based fintech startup Spiko has raised $22 million in a Series A funding round, aiming to revolutionize the way smaller businesses access government-issued securities.

Founded in 2023 by Antoine Michon and Paul-Adrien Hyppolite, former French government advisers, Spiko leverages blockchain technology to offer tokenized access to treasury bills, considered among the safest and most liquid financial instruments. These securities are primarily issued by major Eurozone governments and the US Treasury.

The company's model is based on the premise that the US historically outperforms Europe in liquidity, and Spiko aims to bridge the liquidity gap for European small and medium-sized enterprises (SMEs) by simplifying access to treasury bills. This approach allows these businesses to earn interest on idle cash, unlocking liquidity and improving returns.

Spiko is the first provider in the world to offer fully tokenized Money Market Funds (MMFs), which allows for the issuance, settlement, and custody of securities at lower costs compared to traditional methods. This innovative approach makes it more accessible for smaller European SMEs to participate in treasury yields, which was traditionally more challenging due to the fragmented European financial landscape.

The funding round was led by Index Ventures and attracted investments from a diverse group of investors, including White Star Capital, Frst, Rerail, Bpifrance, Blockwall, and a group of angel investors, including Nik Storonsky (Revolut CEO), Harsh Sinha (Wise CTO), and all seven co-founders of French software unicorn Pennylane.

Spiko's use of digital currencies for transactions further enhances its appeal to smaller businesses. Transfers within Spiko can be made via stablecoins, and customers can top up with digital currencies and withdraw in fiat, or the other way around.

Despite the progress made, Europe remains fragmented by country-specific laws and banking practices compared to the US. Spiko navigates this complexity by obtaining regulatory approval from entities like the Autorité des Marchés Financiers in France.

Hyppolite, one of Spiko's co-founders, stated that European businesses are missing out on returns by not investing idle cash in government-issued securities. Central bank rates in Europe, according to Hyppolite, are above zero, implying that sitting on idle cash means missing out on potential returns.

In summary, Spiko offers a unique solution for European SMEs by leveraging blockchain technology to provide access to risk-free government securities, contrasting with the more established traditional banking systems prevalent in the US. This innovative approach has the potential to revolutionize the European financial landscape, enabling smaller businesses to extract returns from funds that would otherwise remain dormant in their bank accounts.

Spiko's innovative fintech platform, built on blockchain technology, is set to disrupt the traditional business landscape by simplifying access to government securities for European SMEs, particularly in the realm of investing and finance. This evolution in the industry aims to bridge the liquidity gap between Europe and the US, enabling European SMEs to earn interest on idle cash and improve returns.

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