Every EUR0 is backed 1-to-1 by short-term Eurozone sovereign Treasury Bills. No commercial bank deposits, no fractional reserves, no FX risk. This article shows exactly what sits behind your euro balance.
100% Eurozone Treasury Bills
EUR0's reserves are held as EUTBL — a tokenized money market fund managed by Spiko, invested in short-term Treasury Bills issued by France, Germany, and other Eurozone sovereign issuers.
Property | EUTBL |
Asset type | Short-term EUR money market fund (VNAV) |
Underlying | Eurozone Treasury Bills (France, Germany, and other Eurozone sovereigns) |
Maximum maturity | Under 6 months |
Average duration | Under 60 days |
NAV publication | Daily, on-chain via Chainlink oracle |
Auditor | PwC |
Smart contract audit | Trail of Bits |
Regulatory status | Spiko is approved and supervised in the EU |
Why Eurozone Treasury Bills
Short-term sovereign debt from the highest-rated Eurozone countries is one of the safest assets in the euro world. The Usual framework applies five rules to every EUR0 collateral:
Fully collateralized (1:1) — no leverage, no fractional reserves.
Low risk — exposure is limited to Eurozone sovereign debt.
Transparent — verifiable on-chain via Chainlink and off-chain via PwC audits.
Liquid — short maturity profile for quick redemption.
Zero FX risk — the collateral is 100% EUR-denominated, so there is no exposure to dollar movements.
The role of Spiko
Spiko is the tokenizer of EUTBL — the euro equivalent of Hashnote's role for USD0. What Spiko provides:
Regulatory framework — Spiko is supervised by a European regulator and operates under a clear legal structure for tokenized securities.
Asset protection — EUTBL assets are ring-fenced in the event of Spiko bankruptcy.
Audits — PwC for financial audits, Trail of Bits for smart contract audits.
Daily NAV publication — on-chain and at official venues.
What this means for you
If a European commercial bank fails, your EUR0 balance is not affected.
If Spiko itself were to fail, the underlying Treasury Bills are ring-fenced and would be redistributed according to European insolvency law.
You can verify the backing on-chain at any time via the Chainlink NAV feed.
The risks to understand
Risk | What it means |
Interest rate risk | Mitigated by the short average duration (< 60 days). |
Sovereign credit risk | Diversified across high-rated Eurozone issuers. |
Counterparty risk on Spiko | Mitigated by regulation, audits, and ring-fencing. |
Smart contract risk | The Usual contracts must work correctly. 20+ audits have been performed. |
Secondary market peg | EUR0's peg on open markets depends on arbitrage and pool liquidity — see EUR0 Overview for details. |
Note: EUR0 inherits the same risk framework as USD0, adapted for the Eurozone. The collateral is specifically restricted to sovereign debt — corporate debt is prohibited by policy.
Technical note (for DeFi users): EUTBL is an ERC-20 with allowlist/KYC management via a Permission Manager contract. The NAV is published daily on-chain through a Chainlink oracle feed. Direct primary-market redemption applies a 3 bps fee. Indirect redemption through EURC (via the Swapper Engine) is subject to buffer availability. See the docs for the full collateral framework.
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