Boundary Labs, a Galaxy Ventures‑backed startup, has announced the upcoming launch of USBD, an over‑collateralized stablecoin on Ethereum designed for institutional investors. The announcement follows a $2 million pre‑seed funding round led by Galaxy Ventures, with participation from First Block Capital and BlackWood, as well as several crypto‑native funds.
USBD will feature continuous on‑chain verification of reserves and net asset value, a departure from the periodic off‑chain attestations used by major stablecoins like USDT and USDC. Founder and CEO Matthew Mezger, a former Deutsche Bank executive, said the model provides “structural resilience and auditability required for safe, permissionless staking and institutional fiduciary use cases.”
The stablecoin is strictly for asset managers, hedge funds, and family offices, with mandatory KYC/KYB checks. USBD itself will not bear yield; instead, a separate staked token, sUSBD, will capture protocol income from delta‑neutral DeFi strategies, separating cash‑like settlement from risk‑bearing returns. Boundary also plans a private placement campaign to achieve $100 million in total value locked this year.
The announcement coincides with a regulatory push for stablecoin transparency. The US GENIUS Act has formalized reserve requirements, and the FDIC proposed rules to clarify deposit insurance for reserve assets. BlackRock recently opposed the OCC’s 20% cap on tokenized assets, arguing it could harm its BUIDL fund. USBD’s mainnet launch is targeted for early summer 2026 on Ethereum, aiming to plug into existing institutional DeFi flows.
