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Littio, a Colombian Neobank focused on solving the currency devaluation problem for Latin Americans through various dollar-based product offerings, is now using OpenTrade's real-world asset (RWA)-backed yield vaults, via the Avalanche network. Through OpenTrade, Littio offers customers yield-bearing savings Pots with returns backed by U.S. Treasury Bills. OpenTrade's RWA yield vaults allow Littio to operate its product offering on a proven infrastructure at scale and reflect the continued growth of Avalanche’s on-chain finance ecosystem.
Through their B2B2C model, OpenTrade provides businesses access to a suite of on-chain products and capabilities, including lending products for U.S. Treasury Bills, structured credit, and supply chain finance. 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's mobile banking app is helping its tens of thousands of users overcome a prevalent barrier within the LatAm banking sector–the lack of access to dollar-based savings accounts. As of 2021, about 70% of LatAm's population remains unbanked, partly due to strict anti-money laundering laws, high interest rates, prohibitively high minimum account balances, limited resources, and mistrust of banks. Through OpenTrade’s Yield Pots, Littio aims to provide the LatAm region with unprecedented access to a full suite of financial services that makes holding, spending, transferring, and now saving secure and cost-effective. With Littio, users have a simple, fast, low-cost means of converting pesos into dollars (via USDC), which they can save, transfer, and spend in-app or with a Littio debit card. Yield Pots have processed over $80M in transactions thus far, unlocking nearly $250K in user returns in the last four months.
To scale with growing demand, Littio is transitioning its holdings from OpenTrade's vaults on Ethereum to those on Avalanche. Avalanche's EVM compatibility, sub-second transaction finality, low transaction fees, and consistency have proven compelling for institutional deployments and tokenized assets.
“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, Head of Institutions & 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.”
“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
Users can access OpenTrade’s USDC/EURC Yield Pots directly through the Littio app. For more, visit opentrade.io. Want to learn more about Avalanche’s role in enabling underbanked regions to access secure, efficient financial services? Join the team at Avalanche Summit LATAM, taking place in Buenos Aires, Argentina, from October 16 to 18, 2024, to witness the future of Avalanche and experience firsthand the innovations that will drive the next wave of blockchain development. Find out more here.
About the Avalanche Blockchain Network
Avalanche is a high-performance blockchain platform designed for builders who need to scale. Engineered with a revolutionary three-part Layer 1 (L1) architecture, Avalanche is anchored by its Avalanche Consensus Mechanism, ensuring near-instant finality for transactions. The platform also features an open-source Layer 0 (L0) framework, enabling the seamless creation of interoperable Layer 1 blockchains with high throughput on both public and private networks.
Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building the next generation of decentralized applications (dApps). With its unique blend of speed, flexibility, and scalability, Avalanche is the preferred choice for innovators pushing the boundaries of blockchain technology.
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About OpenTrade
OpenTrade is an institutional grade platform for real world asset backed lending and USDC yield products. The OpenTrade platform provides FinTechs with a white label solution that allows them to power USDC and EURC yield products for their users, and the security guarantee of a bankruptcy remote, time-tested legal framework.