Avalanche Replaces Ethereum as LatAm Bank Littio’s Choice for Growing RWA Vault Needs

• Littio’s switch to Avalanche from Ethereum for its Yield Pots reflects a strategic move to handle higher demand and scalability, showcasing Avalanche’s growing influence in financial technologies.
• Avalanche’s technology is enabling financial access to underbanked populations, underlining the potential of blockchain technologies to transform traditional banking landscapes.

After the regulation of cryptocurrencies in Colombia, as reported by CNF in February, Colombian neobank Littio has now made it easier for Latin Americans to gain exposure to U.S. Treasury bills by switching blockchain networks.

Previously using Ethereum (ETH), Littio has migrated to Avalanche (AVAX) to support its Yield Pots product, which allows users to earn interest on U.S. dollar deposits. This change was made in response to the increasing demand for Yield Pots, emphasizing the need for scalability.

This move aligns with Avalanche’s broader strategy, supported by its $50 million real-world asset (RWA) program, which aims to incentivize the development of RWAs on its network. Littio’s adoption of Avalanche marks a significant victory for the platform and contributes to its expanding ecosystem of real-world asset integration.

Partnership with OpenTrade Drives Yield Pot Growth

Littio’s Yield Pots are powered through a partnership with OpenTrade, a London-based company specializing in yield-bearing products that utilize stablecoins and real-world assets like U.S. Treasury bills. These stablecoins, such as USDC, are designed to maintain a one-to-one peg with the U.S. dollar, offering stability and ease of use in digital form.

According to Jeff Handler, Chief Commercial Officer at OpenTrade:

“Littio is currently the only Latin American neobank using their vaults, though more clients are expected soon. Interested clients are primarily neobanks, centralized exchanges, and payment companies already using USDC to fill a demand gap in USD banking services and payments across Latin America.”

Strong Demand Amid Economic Challenges

The demand for these products is driven by the significant depreciation of Latin American currencies, particularly the Colombian peso, which has lost over 54% of its value against the U.S. dollar in the last decade. With limited access to traditional banking services in some countries, Littio provides a vital solution for users looking to preserve and grow their wealth amid economic uncertainty.

Avalanche’s Role in Financial Access

Morgan Krupetsky, head of institutions and capital markets at Ava Labs, highlighted the importance of Avalanche’s technology in expanding financial access to underbanked populations. He explained:

“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 financial rails.”

At the time of writing, 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 AVAX price chart below.