Latin Americans are gaining more streamlined access to U.S. Treasury bills, thanks to fintech products like those from Littio, a Colombian neobank. Recently, Littio transitioned from Ethereum to Avalanche for its Yield Pots, which allow users to earn interest on U.S. dollar deposits. This change is driven by the increasing demand for Yield Pots and the need for more scalable infrastructure. Avalanche’s lower transaction costs, coupled with its reliable performance, made it the blockchain of choice. This move also aligns with the Avalanche Foundation’s $50 million program aimed at boosting the development of real-world assets (RWAs) on its network.
Littio’s Yield Pots are developed through a collaboration with OpenTrade, a London-based firm specializing in yield-bearing products. These products utilize stablecoins, such as USDC, alongside RWAs like U.S. Treasury bills. Stablecoins are digital currencies pegged to traditional fiat, typically the U.S. dollar, while RWAs refer to tangible assets like real estate, digitized and represented on blockchain networks.
Currently, Littio is the only Latin American neobank using OpenTrade’s vaults, though more fintech clients are expected to follow. According to Jeff Handler, Chief Commercial Officer at OpenTrade, future clients will include neobanks, centralized exchanges, and payment companies that already leverage USDC to address the demand for U.S. dollar-based services across the region. Since February, Littio’s Yield Pots have processed over $80 million in transactions and generated $250,000 in returns. Littio reinvests $11 to $13 million monthly into OpenTrade’s vaults, offering users yields between 2% and 5%.
This solution is particularly attractive to Latin Americans facing steep inflation and currency devaluation, such as the Colombian peso, which has lost 54% of its value against the U.S. dollar in the past decade. Littio also helps users bypass currency restrictions and limited access to traditional banking, showcasing how Avalanche’s blockchain technology bridges financial gaps for underbanked populations.
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