- Littio empowers Colombian users with interest-bearing USD accounts, enhancing financial access amid currency devaluation issues.
- The collaboration with OpenTrade enables users to convert pesos to USDC, unlocking significant savings and investment opportunities.
- By migrating to Avalanche, Littio leverages low fees and fast transactions, boosting financial inclusion for the unbanked population.
Colombian neobank Littio is leveraging OpenTrade to offer interest-bearing c to local customers. This initiative addresses the currency devaluation issue in Latin America through an easy-to-use app. Users can seamlessly convert Colombian pesos to USDC.
They can send, spend, and save these digital currencies without hassle. Additionally, Littio’s app connects to OpenTrade’s RWA yield vaults on the Avalanche network. This integration allows customers to earn stable interest on their USDC balances, backed by U.S. Treasury Bills and other secure assets.
OpenTrade has processed over $80 million in transactions for Littio’s Yield Pot product. Since its launch four months ago on Ethereum, the product has already paid out $250,000 in yields.
In response to increasing demand, Littio is transitioning its holdings from Ethereum to OpenTrade’s Rates+ vault on Avalanche. This strategic shift highlights the advantages of Avalanche’s technology. According to Morgan Krupetsky from Ava Labs, it empowers underbanked populations with valuable financial products.
Enhancing Financial Inclusion
In an area that sorely needs access to dollar-denominated accounts, the action attempts to increase financial inclusion. Currently, approximately 20% of the population in Latin America is unbanked. In Colombia, this figure is much higher, at 40%, according to 2021 data. This is an improvement from 54% in 2019, indicating a positive trend.
Additionally, Chainalysis reports that Colombian users conduct about $200 million in cryptocurrency transactions annually. This places Colombia 32nd in global digital asset adoption, trailing behind Argentina, Brazil, and Mexico.
Furthermore, Littio’s app tackles obstacles in Latin American banking. It offers limited access to dollar-based savings accounts. Many in the region face high fees, strict regulations, and a lack of trust in traditional banks.
Within the Littio app, users can convert local currency into USDC. They can then utilize these funds for transactions or save them in Yield Pots. This unique feature has generated user returns in just four months.
Avalanche’s Advantages
Moreover, Littio and OpenTrade’s migration from Ethereum to Avalanche demonstrates the benefits of Avalanche’s EVM compatibility. Its sub-second transaction finality and low fees have proven compelling for institutional deployments.
This shift reinforces the potential of blockchain technology to improve financial accessibility. The collaboration between Littio and OpenTrade exemplifies how fintech innovations can benefit underserved populations across Latin America.
The post Littio Revolutionizes Banking in Colombia with Interest-Bearing USD Accounts appeared first on Crypto News Land.
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