- Littio transitioned its yield vaults from Ethereum to Avalanche to enhance scalability.
- The platform’s lower fees and faster transactions appeal to Littio’s expanding user base.
- Littio enables Latin Americans to save in USDC, secured by U.S. Treasury bills.
Colombia’s Littio Neobank has transitioned its real-world asset yield vaults from Ethereum to Avalanche. On October 9th, 2024, Littio announced that its Yield Pots platform will now operate on Avalanche (AVAX) instead of Ethereum (ETH) due to increasing demand.
Littio’s partnership with OpenTrade has facilitated this shift. It enables users to earn stable returns on USDC balances backed by U.S. Treasury bills. The move aims to cater to the growing interest in U.S. Treasury bills and improve customer transaction efficiency.
Avalanche‘s lower fees and faster transaction speeds are better suited to support Littio’s expanding customer base. The ecosystem growth might lead to a future rise in AVAX’s price as more users and projects adopt the blockchain.
With OpenTrade and Avalanche, Littio Expands USDC-Based Offerings
Interest in digital assets has surged in Latin America, driven by high inflation and currency instability. Littio Neobank has proposed using USDC to offer financial services through an app.
This app would allow users to convert local currencies into USDC for saving, transferring, or spending. Littio’s yield pots, backed by U.S. Treasury bills stored in OpenTrade’s vault, serve as interest-earning savings accounts.
“Over the past couple of years, tokenization has enabled access to a wide array of investment products and utility. This is particularly evident in regions like LatAm, where double-digit interest rates, high inflation, and currency devaluation drive investors towards assets with stable returns. In 2022, Latin America accounted for 9.1% of the global crypto value, reaching $562 billion between July 2021 and June 2022. The 40% growth in adoption is a clear indicator of the region’s increasing interest in digital assets.”
Littio has transitioned from Ethereum to Avalanche to support its growth. The bank would benefit from its EVM compatibility, faster transaction speeds, and lower fees. Avalanche is an ideal platform for Littio’s expanding user community.
This move aims to enhance transaction efficiency and reduce costs for users. Littio says by doing so, it provides secure, dollar-based accounts for many Latin Americans who lack access to traditional banking.
OpenTrade powers Littio’s RWA yield vaults. It is a London-based fintech firm that backs stablecoins with real-world assets like U.S. Treasury Bills. Avalanche’s blockchain technology has been crucial to Littio’s expansion.
According to OpenTrade, regional investors are increasingly seeking stable financial products to preserve wealth.
Over the past four months, Littio’s Yield Pots have processed over $80 Million in transactions, generating $250,000 in user ROIs. Littio reinvests between $11 Million and $13 Million monthly into OpenTrade’s vaults.
Latin America Interest Increased In U.S. Treasury-Backed Yield Products With Neobank Littio Recent Move
Due to currency devaluation and inflation, Latin American investors increasingly seek stable U.S. dollar-based investment products.
Littio’s Yield Pots, offering returns between 2% and 5%, have attracted users from Colombia, Argentina, Brazil, Mexico, and El Salvador. For example, the Colombian peso has depreciated by about 54% against the U.S. dollar over the past decade.
The demand for yield products backed by U.S. Treasury assets is rising in Latin America. Littio is leading the way through its partnership with OpenTrade.
“Littio and Opentrade exemplify how Avalanche’s technology can enable underbanked populations to access compelling products and services that are otherwise unavailable or untenable via traditional rails leverage,”
– said Morgan Krupetsky, the head of institutions and capital markets at Ava Labs.
“I’m thrilled to see OpenTrade’s RWA-backed yield products and ultimately real-world businesses being built on the Avalanche platform.” She added.
“Littio is a case study in how FinTech’s in LatAm can unlock unprecedented access to U.S. Dollar and interest bearing dollar accounts in a way that is simple to use, and highly secure by leveraging the unique capabilities of USDC/EURC, and OpenTrade’s high-quality asset-backed yield products on the Avalanche Blockchain. Littio has done a fantastic job packaging everything into a truly top notch end user facing experience, and we look forward to continue to help support their growth moving forward.” – Jeff Handler, CCO of OpenTrade
Similarly, Franklin Templeton has launched its OnChain U.S. Government Money Fund (FOBXX) on the Avalanche blockchain.
It was initially deployed on the Stellar network in mid-2021 and later moved to Arbitrum. FOBXX is now available on Avalanche to offer investors more blockchain options.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
