Overview of Littio’s Transition to Avalanche 🌎
This year, Littio, a neobank based in Colombia, has transformed its strategy by moving from Ethereum (ETH) vaults to real-world asset-backed yield vaults, known as Yield Pots, powered by OpenTrade on the Avalanche (AVAX) blockchain. This significant change offers users access to a more stable financial solution backed by US Treasury Bills, enhancing their options for dollar-based savings.
Emerging Financial Tools in Latin America 🌟
Tokenization is paving the way for fresh investment avenues, particularly in Latin America, where rising inflation prompts investors to seek more stable options. In 2022, Latin America accounted for 9.1% of the global cryptocurrency market, marking a remarkable 40% increase from the prior year.
Littio aims to bridge the gap for the 70% of the population in Latin America who are unbanked. By leveraging OpenTrade’s Yield Pots, Littio provides an effortless method for users to exchange local currency (pesos) for USD Coin (USDC). These funds can then be saved, transferred, or utilized through the Littio app or a debit card issued by Littio.
The B2B2C model employed by OpenTrade also supports businesses by offering various on-chain financial products such as US Treasury Bill lending and structured credit, in addition to supply chain finance solutions.
In the past four months, Yield Pots have facilitated transactions exceeding $80 million, yielding nearly $250,000 in returns for users engaged in these innovative financial products.
Transitioning from Ethereum to Avalanche 🚀
In response to increasing demand within the region, Littio has transitioned its operations from Ethereum-based vaults to the Avalanche ecosystem. Avalanche offers several advantages, including EVM compatibility, rapid transaction speeds, and reduced fees.
The platform has demonstrated its capability to support institutional-grade projects, contributing to Littio’s wider goal of financial inclusion for underbanked communities. Morgan Krupetsky, the Head of Institutions and Capital Markets at Ava Labs, shared her excitement regarding OpenTrade’s RWA-backed yield products on the Avalanche platform.
Krupetsky stated, “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. I’m thrilled to see OpenTrade’s RWA-backed yield products and ultimately real-world businesses being built on the Avalanche platform.”
Users can conveniently access OpenTrade’s Yield Pots in USDC and EURC through the Littio application, further broadening their financial involvement in the digital economy.
Hot Take 🔥
This year’s shift by Littio toward OpenTrade and the Avalanche blockchain signifies a promising direction for financial services in Latin America. By embracing tokenization and stable digital currencies like USDC, Littio addresses the pressing needs of a largely unbanked population, turning the tide for financial opportunities in the region. This initiative not only offers users a secure avenue for saving but also empowers them with innovative tools that were previously difficult to access. As financial landscapes evolve, Littio’s developments highlight a crucial step toward enhanced monetary inclusion and stability for millions.
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