Colombian neobank Littio said on Wednesday that it was switching Ethereum Unpleasant Avalanche in an effort to offer customers a cheaper means of hedging against the country’s embattled peso.
Leveraging its existing relationship with OpenTrade, a startup that offers stablecoin solutions to fintech companies through the tokenization of real-world assets, Littio hopes to leverage the company’s yield-bearing savings solution.
To meet growing demand, Littio said it would transfer its assets from OpenTrade’s vaults – called Yield Pots – on Ethereum to those on Avalanche.
Avalanche is the crypto network behind the AVAXthe 13th largest digital asset by market capitalization.
The blockchain aims to compete with Ethereum by allowing developers to build decentralized apps on its network, such as decentralized exchanges or NFT marketplaces.
Ethereum is also no longer the best option for customers because Avalanche has lower transaction fees, OpenTrade told us Declutter.
In addition to lower fees, the neobank’s decision to move to Avalanche is based on the network’s Ethereum Virtual Machine compatibility, sub-second transaction finality and consistency,” said Jeff Handler, Chief Commercial Officer at OpenTrade. Declutter.
“Colombia is one of many Latin American countries where currency devaluation has made achieving financial stability for the local retail industry much more difficult,” Handler added, citing strict onboarding requirements of local banks.
Littio is offering customers the chance to save dollars due to the country’s increasingly weak currency. About 1,000 pesos currently buy just $0.24, down about 54% over the past decade.
The bank already allows customers in the country to convert their pesos into dollars using leverage USD coin (USDC). Stablecoins can appear on a number of blockchains, including major networks such as Ethereum, Solana and Avalanche.
Wall Street is also interested in Avalanche: investment company Franklin Templeton joined in August made his The Nasdaq-listed OnChain US Government Money Fund is available on the Avalanche network and also cites low transaction fees as the reason for its move.
Edited by Sebastian Sinclair
