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Developed with Brale and Stably, litUSD aims to cut costs, improve treasury management and potentially used for on-chain settlement of mortgage payments.
By Krisztian Sandor, AI Boost|Edited by Stephen Alpher
Sep 10, 2025, 3:06 p.m.
- LitFinancial rolled out its U.S. dollar stablecoin on the Ethereum blockchain to enhance funding and treasury operations.
- LitUSD is backed 1:1 with cash reserves and aims to revolutionize mortgage finance through blockchain technology.
- Stablecoins are gaining traction with projected payment volumes reaching $1 trillion by 2030, boosted by U.S. regulations for the sector.
Michigan-based mortgage lender LitFinancial on Wednesday debuted its U.S. dollar stablecoin, dubbed litUSD, on the Ethereum blockchain as the digital dollar movement is expanding beyond crypto natives.
The 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 payments. That shift could allow loan performance to be tracked publicly, potentially reshaping liquidity in the secondary mortgage market.
STORY CONTINUES BELOW
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 rails. Keyrock projected that stablecoin payment volume could erach $1 trillion by 2030.
Their mainstream adoption got a significant boost with the U.S. establishing regulation for the asset class and institutions with U.S. President 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$4,408.56 as an ERC-20 token and backed 1:1 with cash and cash equivalents held in reserve. The 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 accounts.
Founded in 2024, LitFinancial employs more than 100 staff and projects an annual mortgage origination run-rate of over $1 billion by 2026. Its leadership includes veterans of Rocket Mortgage and Coinbase.
Read more: Stripe CEO Patrick Collison Explains Why Businesses Are Turning to Stablecoins
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
More For You
By Krisztian Sandor|Edited by Stephen Alpher
35 minutes ago
St. Cloud Financial Credit Union’s upcoming token highlights how smaller financial institutions may tap stablecoins to be competitive following U.S. regulatory clarity.
What to know:
- St. Cloud Financial Credit Union plans to launch Cloud Dollar, what it says is the first stablecoin from a U.S. credit union, by late 2025.
- The stablecoin, developed with Metallicus and DaLandCUSO, will be integrated into the credit union’s banking system, offering members instant, low-cost transactions.
- This initiative reflects smaller financial institutions’ efforts to leverage blockchain technology to compete with fintech companies after the GENIUS Act brought federal regulation for stablecoins.
