LitFinancial has launched its U.S. dollar stablecoin, litUSD, on the Ethereum blockchain, seeking to enhance mortgage lending operations. The stablecoin is backed 1:1 with cash reserves and aims to reduce funding costs while improving treasury management. LitFinancial intends to utilize litUSD for on-chain mortgage payment settlements, potentially offering a more transparent tracking of loan performance and reshaping liquidity within the secondary mortgage market. CEO Tim Barry highlighted stablecoins' growing importance in treasury operations, projecting substantial increases in stablecoin payment volumes due to favorable regulations. Developed in collaboration with Brale and Stably, litUSD maintains compliance with regulatory frameworks and offers a pathway for users to mint and redeem the stablecoin via bank transfers or Circle's USDC. Founded in 2024, LitFinancial anticipates an annual mortgage origination run-rate exceeding $1 billion by 2026, leveraging expertise from veterans of Rocket Mortgage and Coinbase.

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