$2M Raised for Institutional Stablecoin USBD with Daily On-Chain Reserve Reporting

Boundary Labs, a stablecoin startup, has raised $2 million in funding to launch USBD, an institutional-grade stablecoin designed for daily on-chain reserve reporting. Galaxy Ventures led the pre-seed round, with First Block Capital and BlackWood participating alongside other investors.

The fundraise was structured as a simple agreement for future equity (SAFE) with token warrants, which closed in December 2025. According to co-founder and CEO Matthew Mezger, most existing stablecoins rely on trust-based off-chain reporting and monthly third-party attestations, whereas USBD provides daily on-chain reporting of reserve levels, net asset value, and system health.

Mezger said the shift creates the structural transparency required for institutional fiduciary use cases. The protocol prohibits recursive leverage and requires all income-generating mechanisms to be delta-neutral. USBD itself will not be yield-bearing, but a separate staked token called sUSBD will allow eligible institutional participants to earn income generated by delta-neutral DeFi strategies.

Boundary is targeting asset managers, hedge funds, and family offices as its primary users, with access to the protocol requiring Know Your Customer (KYC) and Know Your Business (KYB) verification. The firm plans a private placement campaign to onboard early institutional participants and has set a target of $100 million in total value locked (TVL) by end of 2026.

Boundary plans to launch both USBD and sUSBD on the Ethereum mainnet in early summer 2026, with co-founders Mathias NC and Roman Drapeko rounding out the founding team. The company is currently hiring in trading and research ahead of launch.