PANews reported on May 12th that stablecoin startup Boundary Labs has completed a $2 million pre-seed funding round, led by Galaxy Ventures, with participation from First Block Capital and BlackWood, among others. The company plans to launch its institutional-facing "verifiable" stablecoin, USBD, on the Ethereum mainnet in early summer 2026. Boundary co-founder and CEO Matthew Mezger stated that USBD is designed around the "continuous on-chain verifiability" of reserves, net asset value, and protocol performance, providing daily system state reports, including overcollateralization levels and real-time NAV calculations, aiming to shift stablecoins from a trust-based model to a trustless tool.

USBD itself does not generate interest, but the protocol will provide a separate staking token, sUSBD, allowing eligible institutional participants to earn protocol revenue through neutral hedging DeFi strategies. Protocol revenue will be used to build a treasury reserve, fund operations, and distribute rewards to sUSBD stakers through an on-chain distribution system.