Littio, a Colombian neobank focused on addressing 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.
Via OpenTrade, Littio reportedly provides clients “yield-bearing” savings Pots with returns that are said to be backed by U.S. Treasury Bills.
OpenTrade’s RWA yield vaults enable Littio to operate its product offering on an infrastructure “at scale” and reflect the steady growth of Avalanche’s on-chain finance ecosystem.
Via their B2B2C model, OpenTrade offers businesses access to on-chain products and capabilities, such as lending products for U.S. Treasury Bills, structured credit, and supply chain finance.
During the last several years, tokenization has supported access to an array of investment products and utility.
As explained in a blog post by Avalanche, this is evident in regions such as LatAm, where “double-digit” interest rates, high inflation, and currency devaluation drive investors “towards assets with stable returns.”
In 2022, Latin America had reportedly accounted for 9.1% of the global crypto value, reaching $562B between the time-period from July 2021 and June 2022.
The 40% growth in adoption is said to be a “clear indicator” of the LatAm region’s growing interest in digital assets.
Littio’s mobile banking app is now helping users overcome a prevalent barrier within the LatAm banking sector–the lack of access to dollar-based savings accounts.
As of 2021, around 70% of LatAm‘s population is said to be “unbanked,” partly due to strict anti-money laundering laws, high interest rates, “prohibitively” high minimum account balances, “limited resources,” as well as the general mistrust of banking institutions.
Via OpenTrade’s Yield Pots, Littio intends to offer the LatAm region with access to a suite of financial services that makes holding, spending, transferring, and saving more seamless.
With Littio, users are said to have a practical means of converting pesos into dollars (via USDC), which they may 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.
Users can access OpenTrade’s USDC/EURC Yield Pots directly through the Littio app.
As covered, Avalanche is described as a “high-performance” blockchain platform designed for builders who need to scale.
Engineered with a three-part Layer 1 architecture, Avalanche is anchored by its Avalanche Consensus Mechanism, ensuring “near-instant finality” for transactions.
The platform reportedly features an open-source Layer 0 (L0) framework, enabling the creation of “interoperable” L1 chains with “high throughput” on public and private networks.