Galaxy-backed Boundary to launch verifiable USBD

Boundary Labs raised $2 million in a pre-seed round led by Galaxy Ventures to develop USBD, a verifiable institutional stablecoin, the company said. The round began in late 2025 and closed in December. First Block Capital and BlackWood joined other investors. The funding was structured as a SAFE with token warrants. No investor took a board, advisory, or observer seat and the company did not disclose a valuation. The three co-founders are Matthew Mezger, Mathias NC and CTO Roman Drapeko.

USBD is being designed to deliver continuous, on-chain verification of reserves, net asset value and protocol performance. Boundary plans daily on-chain reporting of system state, including over-collateralization levels and real-time NAV calculations, rather than monthly off-chain attestations.

“The protocol provides daily reporting on system state, including over-collateralization levels and real-time NAV calculations,” Mezger said.

The stablecoin will be explicitly over-collateralized and use delta-neutral hedging to limit exposure to market direction risk and volatility. USBD itself will not pay yield. The protocol will offer a separate staked token, sUSBD, which eligible institutional participants can use to earn protocol income generated through delta-neutral decentralized finance strategies.

Boundary is targeting institutional users such as asset managers, hedge funds and family offices. Access will be provided through a dedicated application that implements know-your-customer and know-your-business verification workflows. The company plans a private placement campaign to onboard early institutional participants and has set a target of reaching $100 million in total value locked by 2026.

The revenue model relies on decentralized finance market mechanisms, including funding rates and basis arbitrage. Boundary requires that income-generating strategies be delta-neutral and prohibits recursive leverage. Revenue will be used to build treasury reserves, cover operations and distribute yield to sUSBD stakers through an on-chain allocation system. Boundary says the approach makes reward flows auditable on-chain, compared with protocols that handle parts of reward distribution off-chain.

The team is currently lean and hiring for trading and research roles. Boundary plans to deploy USBD and sUSBD on the Ethereum mainnet in early summer 2026.