Boundary Labs raised $2M to launch USBD, an institutional stablecoin with daily on-chain reserve reporting.
Stablecoin startup Boundary Labs closed a $2 million pre-seed round on May 11 to fund the development of USBD, an institutional stablecoin built around daily on-chain verification of reserves and protocol performance. Galaxy Ventures led the round, with First Block Capital and BlackWood participating alongside other investors. #Stablecoins #DeFi #Ethereum #InstitutionalFinance
The fundraise was structured as a simple agreement for future equity (SAFE) with token warrants. It closed in December 2025, according to co-founder and CEO Matthew Mezger, a former Deutsche Bank and Digital Currency Group executive. Mezger declined to disclose the valuation and confirmed no investor holds a board, advisory, or observer seat.
Mezger said most existing stablecoins still depend on trust-based off-chain reporting and monthly third-party attestations. Boundary's model replaces that approach with daily on-chain reporting of reserve levels, net asset value, and overall system health. He said the shift creates the structural transparency required for institutional fiduciary use cases.
USBD Protocol Design
"The Boundary protocol provides daily reporting on system state, including over-collateralization levels and real-time NAV calculations," Mezger said. USBD is built with explicit over-collateralization and delta-neutral hedging to limit exposure to market direction risk, he added. The protocol prohibits recursive leverage and requires all income-generating mechanisms to be delta-neutral.
USBD itself will not be yield-bearing. The protocol will offer a separate staked token, sUSBD, through which eligible institutional participants can earn income generated by delta-neutral DeFi strategies. Protocol revenue will be distributed across three uses: building treasury reserves, funding operations, and paying yield to sUSBD stakers through an on-chain allocation system.
Boundary is targeting asset managers, hedge funds, and family offices as its primary users. Access to the protocol will require 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. Co-founders Mathias NC and Roman Drapeko round out the founding team, with Drapeko also serving as chief technology officer. The company is currently hiring in trading and research ahead of launch.
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