Introduction
Littio, a Colombian Neobank, has formed a strategic partnership with OpenTrade to provide local customers with interest-bearing USD accounts utilizing the Avalanche blockchain. This initiative aims to tackle the pressing issue of currency devaluation that many Latin Americans face.
Addressing Currency Devaluation
According to a press release shared with crypto.news, Littio is focusing on mitigating the currency devaluation issues prevalent in Latin America. By leveraging OpenTrade’s yield vaults, known as “Yield Pots,” Littio can offer savings options that provide returns backed by U.S. Treasury Bills.
Leveraging Secure Infrastructure
This partnership enables Littio to utilize a secure and scalable infrastructure to deliver these innovative financial products to local users on the Avalanche (AVAX) blockchain. OpenTrade’s model allows businesses to access a variety of on-chain financial products, including:
- Lending
- Structured credit
With a growing demand for stable investment options in Latin America, this collaboration is timely, especially in a region experiencing high inflation and significant currency fluctuations.
Growing Cryptocurrency Adoption
The region has seen a notable 40% increase in cryptocurrency adoption from mid-2021 to mid-2022, underscoring a robust interest in digital assets.
Littio’s Mobile App
Littio’s mobile application is addressing a significant barrier in Latin American banking: the limited access to dollar-based savings accounts. According to the release, approximately 70% of the region’s population is unbanked, often due to strict regulations, high fees, and a lack of trust in traditional banks.
Converting Local Currency into USDC
Within the Littio app, users can convert their local currency into USDC (USD Coin). They can utilize these funds for various transactions or save them in Yield Pots. So far, these pots have facilitated over $80 million in transactions, generating nearly $250,000 in user returns within just four months.
Conclusion
The partnership between Littio and OpenTrade is a significant step towards providing Latin American customers with stable and reliable financial options on the blockchain. By addressing currency devaluation and enhancing access to dollar-based savings, this initiative promises to empower users and contribute to the growing cryptocurrency ecosystem in the region.
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