Case Study: How Stably Helped Launch litUSD
- David Zhang
- Sep 11
- 3 min read
Background
In May 2025, LitFinancial ("Lit") engaged Stably to design and advise on a U.S. dollar-backed stablecoin tailored to its mortgage lending model. The initiative needed to align with the newly enacted GENIUS Act while supporting Lit’s vision for on-chain financial operations. Within two months, Stably developed a comprehensive strategy and execution plan, working alongside issuance partner Brale. By August, Lit successfully launched litUSD on Ethereum—marking a milestone in bringing stablecoin technology to the mortgage industry.
What?
litUSD is an ERC-20 US Dollar stablecoin issued by Brale on the Ethereum network. Designed to comply with new GENIUS Act regulations, litUSD is fully backed by a reserve of cash and cash equivalents. The token can be minted and redeemed 1:1 via USDC or bank transfers through a verified Brale account.
Why?
litUSD enables Lit to tokenize idle cash on its balance sheet into stablecoins for treasury management purposes, enhancing operational efficiency while reducing the cost of capital with yields from DeFi. Lit is also exploring on-chain settlement of mortgage payments with litUSD, allowing loan performance to be tracked publicly which could improve liquidity in the secondary mortgage market.
Who?
LitFinancial: A US-regulated FinTech mortgage broker and lender based in Troy, Michigan (NMLS # 2553292). Founded in 2024, the company is led by mortgage and real estate veterans with more than two decades of industry experience. The Lit team has grown to over 100 members, including 70 licensed loan officers—with expanded operations across 35 US states and a projected annual origination run-rate of $1-billion by 2026.
Brale: Brale is a FinCEN-registered money services business based in Des Moines, Iowa (NMLS # 2376957). Brale currently serves as the convertible virtual currency (CVC) administrator, i.e. issuer, of litUSD. Founded in 2022, the company provides a regulatory-compliant Stablecoin-as-a-Service platform for businesses to launch branded stablecoins in a matter of days—with full support for token issuance, funds processing, and KYC/AML screening.
Stably: Stably is a stablecoin development and advisory firm based in Seattle, Washington. The company specializes in helping institutions and enterprises create their own brand of digital money, tailored specifically for their business models. Stably was among the world’s earliest stablecoin issuers, having supported the launch of more than 16 stablecoin projects since its founding in 2018.
How?
Every litUSD token is backed 1:1 with US Dollar (i.e., bank deposits, money market instruments, US T-Bills)
Collateral reserve is held by Brale for the benefit of verified litUSD holders
Collateral reserve is never rehypothecated nor invested in mortgage securities in order to comply with GENIUS regulations (mortgage lending and stablecoin separation)
Price stability is maintained via direct issuance/redemption at parity, minus Brale's fees
Issuance and redemption are available only for KYC/AML verified Brale users
Token is freely transferrable and compatible with decentralized applications
When?
May-July:
Initial scoping, product design, and business strategy development.
August:
September-December:
Enable more stablecoin liquidity pools for litUSD on Curve.
Explore integrations with other DeFi protocols to build on-chain liquidity.
Begin expansions to Ethereum layer-2 and emerging layer-1 networks.
2026+:
Broaden adoption within Lit’s traditional mortgage lending ecosystem, including litUSD-based mortgage payments.
Integrate with institutional partners to enhance capital efficiency across the housing finance value chain with litUSD.
Where?
Blockchain networks: Issued natively on Ethereum—more chain support coming soon.
Supported regions: US and globally, except restricted regions per Brale's policies.
For inquiries or to learn more, please visit stably.io or contact hello@stably.io.
Disclaimer: Digital assets involve substantial risks, including volatility, regulatory changes, counterparty exposure, cybersecurity threats, and smart contract failures. Users are solely responsible for their own financial decisions. Nothing herein constitutes financial, legal, or investment advice, and individuals should conduct independent due diligence and consult licensed professionals. Stably is not liable for losses arising from market movements, technology failures, unauthorized access, or changes in asset value or redemption. For more information, please refer to our Disclaimer.