Littio, a Colombian neobank, has announced that its Yield Pots platform will no longer operate on Ethereum (ETH) but Avalanche (AVAX) This move is to meet increasing appetite for U.S. Treasury bills and to enhance efficiency in its transactions with its customers. This could mean an upsurge in the AVAX price as more users and projects come on the blockchain.
Littio Moves to Avalanche for Yield Pots
In light of the increasing need of investors to gain access to U.S Treasury bills, Littio has decided to transfer its Yield Pots platform from Ethereum to Avalanche. Yield Pots gives its customers the opportunity to earn interest on their US Dollar deposits through stablecoin backed products.
In a statement, the company said that it had to expand and enhance the transaction processes due to increased users’ traffic, which necessitated the change.
Avalanche unlocks worldwide access to a diverse range of investment products and utilities
Colombian Neobank Littio is addressing currency devaluation for Latin Americans through its easy-to-use app, allowing users to convert pesos to $USDC that they can send, spend, and… pic.twitter.com/9v3IVBIGqw
— Avalanche9000 (@avax) October 9, 2024
Littio especially noted Avalanche’s low transaction fees and faster settlement times as the main reasons for choosing this platform. This transition will help Littio to continue providing its services more effectively and make it easier for clients to access the products that generate yield on real-world assets (RWAs), including U.S. Treasury bills.
Role of OpenTrade in the Transition
Littio’s link with OpenTrade, a London-based company, is a key factor in this change. OpenTrade’s offerings are yield-generation products that utilize stablecoins and other real-world assets such as U.S. Treasury bills.
These RWAs are tokenized which means that the investors can acquire the exposure to the off-chain assets through the use of a blockchain.
Jeff Handler, the Chief Commercial Officer of OpenTrade revealed that Littio is the only Latin American neobank using OpenTrade’s vaults at the moment. Nevertheless, there are plans to onboard more clients before the year ends. He pointed out that the need for the USD-linked services, like payments and bank accounts, is rising throughout Latin America, and that is why stablecoin-based fintech solutions like those provided by Littio are in demand.
Avalanche’s Growing RWA Ecosystem
With its low-cost and high-speed blockchain, Avalanche has therefore become one of the leading platforms in real-world asset tokenization. The Avalanche Foundation has backed this by launching a $50m initiative to support RWA creation on its network. The move of Littio’s Yield Pots to Avalanche is considered a positive for the platform as it demonstrates its capacity to host institutional-grade financial products.
Morgan Krupetsky, the Head of Institutions and Capital Markets at Ava Labs stated that Avalanche is enabling the unbanked population in Latin America to access efficient and secure financial services.
With moving to Avalanche, Littio wants to offer a better service to its customers especially those in countries with high inflation rates and devaluation of local currencies.
AVAX Price Outlook Amid Increased Adoption
With Colombian neobank Littio’s shift to Avalanche, AVAX could see a positive price movement due to growing demand for its blockchain. Since mid-2023, AVAX has shown a bullish pattern, with higher lows and a solid ascending support line. This pattern suggests that more buyers are entering the market after each pullback, increasing confidence in the asset. However, as of press time, AVAX price was trading at $26.16, a 0.30% decline from the intra-day high.
Source: X
Despite this, analysts have noted that if AVAX price can maintain its momentum above the key support line, it could see significant upside potential. Projections suggest it could experience gains of up to 138.74%, potentially reaching a price near $50 if the bullish trend continues.
This development comes at a time when Avalanche is gaining traction across several sectors. With more fintech platforms like Littio adopting Avalanche, AVAX could attract additional attention from investors, further boosting its price
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