Why a Colombian Neobank Switches to Avalanche

Exciting developments are underway as the Colombian neobank, Littio, transitions from
Ethereum
to
Avalanche. This strategic move aims to provide customers with a cost-effective solution to combat the challenging value of Colombia’s peso.

Exploring the Switch to Avalanche

By leveraging its alliance with OpenTrade, Littio seeks to capitalize on stablecoin solutions that fintech companies often use to tokenize real-world assets. The partnership centers around integrating a savings solution that generates yield for Littio’s clientele. To accommodate increasing demand, the neobank plans to migrate its holdings from Ethereum-based Yield Pots to Avalanche’s infrastructure. This strategic transition aligns Littio with Avalanche’s AVAX, a robust digital currency through
which the blockchain network seeks to outperform Ethereum.

Why Avalanche Over Ethereum?

Avalanche distinguishes itself with lower transaction fees and deeper compatibility with Ethereum Virtual Machine (EVM). Furthermore, the network offers rapid transaction confirmations under one second, making it more efficient for decentralized app developers. For Littio’s customers, this change reduces costs and enhances performance.

OpenTrade’s Chief Commercial Officer, Jeff Handler, acknowledges the economic instability linked with the devaluation of Colombia’s peso, mentioning how it complicates financial security for citizens. Littio aims to bridge this gap, enabling customers to hold savings in U.S. dollars. Currently, the exchange rate challenges Colombians, as 1,000 pesos equals merely $0.24, emphasizing the need for more stable financial alternatives.

Already, Littio facilitates peso conversion to USD using
USD Coin (USDC)
. Stablecoins like USDC have found utility across various platforms, including Ethereum and Avalanche, widening access for users.

Avalanche’s appeal has also caught the eye of financial giants like Franklin Templeton, which recently unveiled its Nasdaq-listed OnChain U.S. Government Money Fund on the Avalanche platform. They highlighted the network’s economic transaction fees, supporting Littio’s strategic migration.

Edited by Sebastian Sinclair