Colombian Neobank Littio Moves to Avalanche for Yield Pots, AVAX Price Outlook Amid Increased Adoption

Littio, a Colombian neobank, has announced that its Yield Pots platform will no longer operate on Ethereum (ETH) but Avalanche (AVAX)

Colombian neobank Littio has announced that its Yield Pots platform will now operate on the Avalanche blockchain, shifting from Ethereum. This move aims to cater to the increasing demand for U.S. Treasury bills and enhance efficiency in transactions with its customers.

Littio provides its clients with the opportunity to earn yield on their US Dollar deposits through products backed by stablecoins. In a statement, the company highlighted the need to optimize and expand its transaction processes due to growing user traffic, which ultimately led to this decision.

Littio particularly noted Avalanche's low transaction fees and faster settlement times as key factors in choosing this platform. This transition will enable Littio to continue offering its services more effectively, facilitating clients' access to products that generate yield on real-world assets, including U.S. Treasury bills.

Littio's partnership with OpenTrade, a London-based company that offers yield-generation products utilizing stablecoins and other real-world assets, plays a crucial role in this shift. These RWAs are tokenized, allowing investors to gain exposure to off-chain assets through the use of a blockchain.

According to Jeff Handler, Chief Commercial Officer of OpenTrade, Littio is currently the only Latin American neobank utilizing OpenTrade's vaults. However, they plan to onboard more clients by the end of the year.

"There is a rising need for USD-linked services, such as bank accounts and payments, throughout Latin America, which is why stablecoin-based fintech solutions like Littio's are in such high demand," Handler noted.

This development is significant for Avalanche, which has been positioning itself as a leading platform for real-world asset tokenization, thanks to its low-cost, high-speed blockchain.

The Avalanche Foundation has further supported this initiative by launching a $50m effort to support the creation of RWAs on its network. As a result, this move by Littio is considered positive for the platform, showcasing its capacity to host institutional-grade financial products.

"Avalanche is enabling the unbanked population in Latin America to access efficient and secure financial services," said Morgan Krupetsky, Head of Institutions and Capital Markets at Ava Labs.

This shift by Littio is aimed at providing better service to its customers, especially in countries experiencing high inflation rates and currency devaluation. Notably, this move could also lead to increased demand for the AVAX token.

Since mid-2023, AVAX price has been exhibiting a bullish pattern on the technical front, with higher lows and a strong ascending support line. This technical formation suggests that more buyers are entering the market after each pullback, indicating increasing confidence in the asset.

However, at press time, AVAX price was trading at $26.16, showcasing a 0.30% decline from the intra-day high.

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