What is a MMF?
A money market fund (MMF) is a mutual fund that only invests in extremely liquid, ultra short-term and high credit rating financial instruments. MMFs are commonly used by CFOs, treasury managers or high net worth individuals to invest their cash in liquid, safe and yield-bearing assets. Compared to the alternative of keeping cash in a bank account or in stablecoins, investing in MMFs provides a positive yield and reduces counterparty risk.
In jurisdictions such as the European Union or the United States, MMFs are highly regulated products. This is to ensure they can consistently meet investor expectations in terms of liquidity and safety, even during the most challenging market conditions.
MMFs typically yield approximately the risk-free rate of the currency in which they are denominated. Because of the recent rise in interest rates, the amount invested in MMFs worldwide has surged over the past few months.
As an individual or an organization, if you hold your cash in stablecoins or into a deposit account with a commercial bank:
- You are likely missing out on the risk-free rate, i.e. currently around 5.3% in USD and 3.9% in EUR
- You most likely have a non-negligible counterparty risk vis-à-vis the issuer of your stablecoins (depeg risk, credit risk) or your commercial bank (credit risk) - at least on the portion of your funds above the insured deposit limit. Spiko's MMFs have been specifically designed to help you find solutions to these problems.
Key facts
Spiko’s MMFs are the world’s first fully licensed MMF available on your wallet.
| Spiko US T-Bills MMF | Spiko EU T-Bills MMF | |
|---|---|---|
| Currency | $ USD | € EUR |
| ISIN | FR001400ODM9 | FR001400ODL1 |
| Bloomberg ticker | SPKUSMM | SPKEUMM |
| Investment policy | Invests in T-Bills issued by the United States with a maturity of less than 6 months | Invests in T-Bills issued by governments of the Eurozone with an "investment grade" rating and a maturity of less than 6 months |
| Maximum weighted average maturity of portfolio | 60 days | 60 days |
| Liquidity | Redemptions are executed daily, funds typically arrive in your bank account or on your wallet in 0 to 1 business days, depending on your bank | Redemptions are executed daily, funds typically arrive in your bank account or on your wallet in 0 to 1 business days, depending on your bank |
| Symbol of the share of the Fund | USTBL | EUTBL |
| Available networks | Ethereum, Polygon PoS | Ethereum, Polygon PoS |
| Target yield | Effective Federal Funds Rate (EFFR) | Euro Short-Term Rate (€STR) |
| Subscription fees | 0% | 0% |
| Redemption fees | 0% | 0% |
| Admnistrative fees | 0.10% per year | 0.10% per year |
| Management fees | 0.30% per year, including 0.15% for Spiko |