Boundary Labs has raised $2 million in a pre-seed funding round and is accelerating the launch of its institutional stablecoin, USBD.

The Block recently reported that Galaxy Ventures led the investment, with participation from First Block Capital and Blackwood, among others.

Boundary Labs is designing USBD as an institutional stablecoin that can continuously verify reserves, net asset value and protocol performance on-chain. Co-founder and CEO Matthew Mezger (매슈 메즈거) said existing stablecoins rely heavily on off-chain reporting and attestations, and that the company is developing smart contract code to shift from monthly off-chain attestations to daily on-chain verification.

The Boundary protocol reports system status daily, including overcollateralisation levels and real-time net asset value calculations. USBD is based on explicit overcollateralisation and a delta-neutral hedging structure to address market directional risk and volatility, The Block said.

Boundary Labs is targeting institutional demand from asset managers, hedge funds and family offices with USBD. It plans to offer it through a dedicated application with know-your-customer and business verification procedures.