Colombia’s Littio Neobank plans to switch its real-world asset yield vaults from Ethereum to Avalanche due to the rising demand.
The collaboration with OpenTrade enables users to earn stable returns on USDC balances backed by U.S. Treasury bills. Avalanche’s lower fees and faster transaction speeds make it more possible to support Littio’s growing customer base.
Littio Expands USDC-Based Offerings with OpenTrade and Avalanche
Regarding the issue of currency devaluation in Latin America, Littio proposed using USDC to provide financial services through an application. The app allows users to convert local currencies into USDC, which can be saved, transferred, or spent.
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Littio’s Yield Pots base their funds on U.S. Treasury Bills stored in OpenTrade’s vault, which can be safely used as interest-earning savings accounts. By choosing Avalanche over Ethereum, the company seeks to scale to accommodate increased growth.
EVM compatibility, faster sub-second transaction finality, and low transaction fees make Avalanche ideal for accommodating Littio’s expanding user community. The bank believes that this transition will enhance transaction efficiency and lower user costs.
Littio’s RWA yield vaults are powered by OpenTrade, an open banking fintech firm based in London. OpenTrade underpins stablecoins with real-world assets, including US Treasury Bills. Yield Pots have reached over 80 million transactions, with the ROI in the last four months equaling $250,000 for users. Littio reinvests between $11 million and $13 million monthly into OpenTrade’s vaults.
Rising Demand for U.S. Treasury-Backed Yield Products in LatAm
Latin American investors are trying to access stable U.S. dollar-based investment products due to its currency devaluation and inflation. Littio’s Yield Pots provide yields between 2% and 5%, which many users from Colombia, Argentina, Brazil, Mexico, and El Salvador find engaging.
The Colombian peso, for instance, has declined by approximately 54% against the US dollar over the last ten years. The demand for yield products supported by the US Treasury is increasing in the Latin American region.
Littio is among the pioneers in this market through its association with OpenTrade. Jeff Handler, Chief Commercial Officer of OpenTrade, also shared his thoughts:
“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.”
Morgan Krupetsky, Head of Institutions & Capital Markets at Ava Labs, praised the neobank and OpenTrade for bringing secure financial solutions to the unbanked regions through Avalanche’s technology. She added,
“I’m thrilled to see OpenTrade’s RWA-backed yield products and ultimately real-world businesses being built on the Avalanche platform.”
Similarly, a major asset management firm, Franklin Templeton, has opened its OnChain U.S. Government Money Fund, an investment product FOBXX based on the Avalanche blockchain platform.
The FOBXX was first deployed on the Stellar network in mid-2021 and later moved to Arbitrum. Recently, it is present in Avalanche to provide investors with more blockchain platforms.
