Stablecoin startup Boundary Labs is preparing to launch USBD, a “verifiable” institutional-grade stablecoin, following its most recent successful fundraising round.

 

The $2 million preseed funding round, which began last year, was led by Galaxy Ventures, with other investors, including First Block Capital and BlackWood, also participating in the round.

 

 

Following its recent fundraising success, the Boundary Labs team aims to create a stablecoin whose reserves are completely verifiable on-chain, including the stablecoin’s net asset value and protocol performance. This marks a sharp contrast with other stablecoins that depend on trust-based off-chain reporting and attestations.

 

“The Boundary protocol provides daily reporting on system state, including overcollateralization levels and real-time NAV calculations. USBD is engineered with explicit over-collateralization and delta neutral hedging to protect against market direction risk and volatility,” said Matthew Mezger, co-founder and CEO of Boundary Labs, about the USBD stablecoin.

 

Because trust is important for enhancing institutional adoption of USBD, especially for treasury management, collateral, and fiduciary use cases, Mezger said the team is building the entire USBD infrastructure with advanced smart contract code that moves the industry from monthly off-chain attestations to daily on-chain verification. By doing so, Boundary aims to transition from common trust-based stablecoin systems to a trustless one. 

 

“This shift provides the structural resilience and auditability required for safe, permissionless staking and institutional fiduciary use cases, effectively transforming stablecoins into robust financial infrastructure,” Mezger said.

 

Boundary Lab’s Yield-Generation Strategies

Unlike other yield-generating stablecoins, USBD will not be a yield-bearing stablecoin. Nevertheless, Boundary Labs will create sUSBD, a separate staked token that will enable institutional clients to earn yield from the protocol’s decentralized finance strategies.

 

The revenue generated by the protocol will be used to build treasury reserves, fund operations, and will also be distributed to sUSBD stakers through an on-chain allocation system. The reward system will be fully on-chain and available for users to track and audit.

 

To onboard early institutional clients, Boundary Labs is planning to launch a private placement campaign with the goal of reaching $100 million in total value locked (TVL). Both USBD and sUSBD will be launched on Ethereum.