Boundary Labs to Launch On-Chain Institutional Stablecoin USBD
Boundary Labs, backed by Galaxy Ventures, will launch USBD, an on-chain verifiable U.S. dollar stablecoin for asset managers, hedge funds and family offices after a $2 million pre-seed round.
Boundary Labs announced plans to launch USBD, an on-chain verifiable U.S. dollar stablecoin aimed at asset managers, hedge funds and family offices. The project was disclosed Monday by the startup, which is led by former Deutsche Bank executive Matthew Mezger.
The company says USBD will provide continuous on-chain verifiability of its reserves rather than relying primarily on off-chain attestations. Boundary presents the architecture as designed to improve auditability and to support permissionless staking and institutional fiduciary use cases. Mezger described the design as delivering ‘the structural resilience and auditability required for safe, permissionless staking and institutional fiduciary use cases.’
Access to USBD will be limited to verified institutional participants. Boundary requires know-your-customer and know-your-business checks for anyone seeking access to the token. The stablecoin itself will not pay yield; the firm plans a separate staked token, sUSBD, to distribute protocol income to eligible institutional holders. Boundary also intends to run a private placement campaign with the goal of reaching $100 million in total value locked this year.
Boundary raised $2 million in a pre-seed round led by Galaxy Ventures, with participation from First Block Capital and BlackWood. The company stated that none of those investors, including Galaxy, will hold board, advisory or observer seats at Boundary despite leading the financing in 2025.
The announcement arrives amid regulatory activity on stablecoins. U.S. legislation known as the GENIUS Act has set out formal reserve requirements for dollar-denominated stablecoins, and federal agencies have proposed rules to align regulatory treatment, including clarifications on deposit insurance coverage for reserve assets. Galaxy estimates the stablecoin market exceeds $300 billion. Asset manager BlackRock has raised concerns about a proposed 20% cap on tokenized assets, saying the limit could affect tokenized fund products.
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