Litio’s switch of its yield pot from Ethereum to Avalanche reflects a strategic move to address higher demand and scalability, and signals Avalanche’s growing influence in financial technology. Avalanche’s technology highlights the potential of blockchain technology to enable financial access to the underbanked and transform the traditional banking landscape.
As reported by CNF in February, in response to Colombia’s cryptocurrency regulations, Colombian neobank Litio has switched its blockchain network to increase Latin American exposure to U.S. Treasury securities.
Previously using Ethereum (ETH), Littio has moved to Avalanche (AVAX) to support its Yield Pots product, which allows users to earn interest on their USD deposits. This change was made in response to the growing demand for yield pots, emphasizing the need for scalability.
The move is consistent with Avalanche’s broader strategy, supported by a $50 million Real World Assets (RWA) program aimed at encouraging the development of RWA on the network. Littio’s adoption of Avalanche represents a major win for the platform, contributing to the expansion of the real-world asset integration ecosystem.
Partnership with OpenTrade fuels yield pot growth
Litio’s yield pot is enhanced through a partnership with London-based OpenTrade, which specializes in high-yield products using real-world assets such as stablecoins and U.S. Treasury securities. Stablecoins such as USDC are designed to maintain a 1:1 peg to the US dollar, providing stability and ease of use in a digital format.
said Jeff Handler, Chief Commercial Officer at OpenTrade.
“Littio is currently the only Latin American neobank using its own vaults, but expects more customers soon. Interested customers are primarily interested in US dollar banking services and Neobanks, centralized exchanges, and payment companies that are already using USDC to fill the payment demand gap.”
Robust demand despite economic challenges
Demand for these products is driven by the significant depreciation of Latin American currencies, particularly the Colombian peso, which has lost more than 54% of its value against the US dollar over the past decade. With limited access to traditional banking services in some countries, Litio provides an important solution for users looking to preserve and grow their wealth amid economic uncertainty.
Avalanche’s role in financial access
Morgan Krupetsky, head of institutional and capital markets at Ava Labs, emphasized the importance of Avalanche’s technology in expanding financial access to the unbanked. He explained:
“Littio and OpenTrade exemplify how Avalanche’s technology can give the unbanked access to compelling products and services that are unavailable or unsustainable through traditional financial rails.”
At the time of writing, Avalanche (AVAX) is trading at $26.07, down 1.82% over the past day and up 2.31% over the past week. Please see the AVAX price list below.
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