LitFinancial Introduces Stablecoin on Ethereum to Streamline Mortgage Lending

Michigan-based mortgage lender LitFinancial on Wednesday debuted its ￰0￱ stablecoin, dubbed litUSD, on the Ethereum blockchain as the digital dollar movement is expanding beyond crypto ￰1￱ firm said it plans to use the token to cut funding costs and improve treasury management operations, while also exploring on-chain settlement of mortgage ￰2￱ shift could allow loan performance to be tracked publicly, potentially reshaping liquidity in the secondary mortgage market. Stablecoins, cryptocurrencies with prices anchored to fiat money like the U. S. dollar, are quickly growing in popularity as an alternative for payments, promising faster, cheaper transactions using blockchain ￰3￱ projected that stablecoin payment volume could erach $1 trillion by ￰4￱ mainstream adoption got a significant boost with the ￰5￱ regulation for the asset class and institutions with ￰6￱ Donald Trump signing the GENIUS Act in law in July.

"Stablecoins are rapidly becoming an essential tool for modern treasury operations," LitFinancial CEO Tim Barry said in statement. "With litUSD, we’re building resilience and adaptability into our business model while pioneering how mortgage finance can evolve with blockchain technology." The stablecoin, dubbed litUSD , is deployed on the Ethereum (ETH) as an ERC-20 token and backed 1:1 with cash and cash equivalents held in ￰7￱ firm chose Ethereum to build on because of its "stability, decentralized nature and aligning with domestic policies,” Barry said. Brale, a FinCEN-registered money services business, manages issuance and redemption, while advisory firm Stably supports token economics and integration with decentralized finance (DeFi).

Consumers can mint and redeem LitUSD via bank transfer or Circle's USDC stablecoin through Brale's verified business ￰8￱ in 2024, LitFinancial employs more than 100 staff and projects an annual mortgage origination run-rate of over $1 billion by ￰9￱ leadership includes veterans of Rocket Mortgage and ￰10￱ more: Stripe CEO Patrick Collison Explains Why Businesses Are Turning to Stablecoins