Littio Chooses Avalanche Over Ethereum for RWA Vaults in LatAm

• Littio’s migration from Ethereum to Avalanche for its Yield Pots signifies a pivotal move to accommodate expanding demand and scalability constraints, underscoring Avalanche’s increasing prominence in the realm of financial technologies.
• Avalanche is pioneering financial access for underbanked communities, illustrating the transformative potential of blockchain technologies in reshaping traditional financial systems.

In the wake of changes in cryptocurrency regulations in Colombia, as highlighted by a report from CNF in February, Colombian neobank Littio has transitioned its blockchain network from Ethereum to Avalanche. This shift is intended to enhance access to U.S. Treasury bills for Latin Americans.

Previously reliant on Ethereum (ETH), Littio opted to switch to Avalanche (AVAX) to bolster its Yield Pots service, which facilitates interest earnings on U.S. dollar deposits. This transition reflects the rising demand for Yield Pots, highlighting a crucial need for enhanced scalability solutions.

This adoption is consistent with Avalanche’s overarching strategy, supported by a $50 million real-world asset (RWA) initiative designed to foster the growth of RWAs within its ecosystem. By embracing Avalanche, Littio significantly contributes to the expansion of Avalanche’s real-world asset integration.

Partnership with OpenTrade Enhances Yield Pot Expansion

Littio’s Yield Pots are successfully powered through a collaboration with OpenTrade, a London-based entity specializing in yield-generating products utilizing stablecoins and RWAs like U.S. Treasury bills. These stablecoins, notably USDC, aim to maintain a stable one-to-one peg with the U.S. dollar, ensuring digital form reliability and ease of use.

Jeff Handler, Chief Commercial Officer at OpenTrade, noted:

“Currently, Littio is the sole Latin American neobank leveraging their vaults, but an influx of clients is anticipated soon. Prospective clients include neobanks, centralized exchanges, and payment companies already utilizing USDC to address the demand for USD banking services and payments across Latin America.”

High Demand due to Economic Conditions

The burgeoning demand for these financial products stems from the significant depreciation of various Latin American currencies, notably the Colombian peso, which has dwindled by over 54% against the U.S. dollar in the past decade. Limited access to traditional banking services in some regions propels Littio to serve as a crucial solution for users seeking to preserve and grow wealth amidst economic challenges.

Avalanche’s Impact on Financial Inclusivity

Morgan Krupetsky, head of institutions and capital markets at Ava Labs, underscored the impact of Avalanche’s technology in broadening financial inclusivity for underbanked communities. He stated:

“Littio and OpenTrade highlight how Avalanche’s technology empowers underbanked populations to access products and services that are otherwise not available through conventional financial means.”

As of the writing of this article, Avalanche (AVAX) is trading at $26.07 with a decrease of 1.82% in the past day and an increase of 2.31% in the past week.  See the AVAX price chart below.

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