LitFinancial Launches litUSD Stablecoin on Ethereum for Mortgage Payments
LitFinancial, a Michigan-based mortgage lender, launched its U.S. dollar stablecoin, litUSD, on the Ethereum blockchain. The firm aims to reduce funding costs and enhance treasury management while exploring on-chain mortgage payment settlements.
- litUSD is an ERC-20 token backed 1:1 by cash and cash equivalents.
- The move could allow public tracking of loan performance, potentially altering liquidity in the secondary mortgage market.
- Stablecoins are gaining traction as alternatives for payments, with projected transaction volumes reaching $1 trillion annually by 2030.
- The U.S. regulatory framework for stablecoins has advanced, aided by the signing of the GENIUS Act into law.
- Minting and redemption of litUSD can be done via bank transfer or using Circle's USDC through Brale's verified accounts.
- LitFinancial projects over $1 billion in annual mortgage origination by 2026.
Leadership includes veterans from Rocket Mortgage and Coinbase, indicating strong industry expertise.