LitFinancial introduces stablecoin to ‘modernize’ mortgage lending

Mortgage lending fintech LitFinancial announced on Wednesday the launch of litUSD, a U.S. dollar-backed stablecoin built on the Ethereum blockchain in partnership with Brale and Stably.

The company said the token is designed to “modernize” mortgage lending, streamline treasury operations and increase transparency in mortgage finance. It also complies with the federal GENIUS Act, a law signed by President Donald Trump in July that established the first federal regulatory framework for stablecoins.

Issued as an ERC-20 token by Brale, a FinCEN-registered money services business, litUSD is backed one to one with cash and cash equivalents held in reserve.

Businesses can mint or redeem tokens through bank transfers or USDC using verified Brale accounts, according to LitFinancial’s press release.

“Stablecoins are rapidly becoming an essential tool for modern treasury operations,” said Tim Barry, CEO of LitFinancial. “With litUSD, we’re building resilience and adaptability into our business model while pioneering how mortgage finance can evolve with blockchain technology. Everything has been intentional, especially building litUSD on ETH due to its stability, decentralized nature, and aligning with domestic policies.”

Brale serves as the regulatory and technical partner for litUSD. Its CEO, Ben Milne, said the project shows how regulated institutions can adopt stablecoin technology under established legal frameworks.

Seattle-based Stably advised on strategy, token economics, launch execution and decentralized finance integration. CEO Kory Hoang said litUSD has the potential to lower the cost of credit and change how mortgages are priced and delivered.

LitUSD is now available for minting and redemption through Brale’s platform.

Lit, founded in 2024 and headquartered in Troy, Michigan, employs more than 100 people and expects an annual mortgage origination volume of more than $1 billion by 2026.