Cryptocurrencies,  Technology

Boundary to Launch ‘Verifiable’ Stablecoin for Institutions

USBD will be for pre-approved institutions only

By  / May 11, 2026 /

Boundary Labs today announced that it has closed a $2 million pre-seed funding round to launch a new stablecoin, designed for institutions, that will provide onchain verification of its backing reserves.

Exclusively for financial and blockchain institutions, the USBD stablecoin is engineered from the ground up for pre-approved participants who require “a new standard of onchain verifiability,” Boundary labs said in a statement.

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Galaxy Ventures led the funding round, with participation by FirstBlock Capital and BlockWood, among others.

“‘Trust but verify’ is a phrase core to the onchain industry as it champions a critical principle where institutions and retail should not just trust but also verify that what a protocol says and offers is real,” the company said. “Without real verifiable, there is no real trust. This is paramount to the industry’s security, stability, and scalability. However, the current stablecoin landscape often forces institutions to rely on trust rather than working with immediately verifiable products and reserves.”

The verifiability of stablecoin reserves has been an issue for many years as Tether’s USDT, the largest stablecoin with a market capitalization of $190 billion, has relied on attestations that it holds the backing reserves it claims rather than full audits. Tether says a full audit is underway. In early 2021, Tether paid an $18.5 million settlement to the New York Attorney General for lying about the makeup of its reserves.

The U.S. GENIUS Act says that payment stablecoins must be backed by dollars or highly liquid investments like short-term treasury notes. Tether is launching a separate stablecoin that will be used in the U.S. to meet the GENIUS Act’s requirements.

Other new stablecoin launches include PayPal’s USDPT and the Canadian-dollar-denominated CADD.

Boundary Labs said it is providing a framework for verifiability of reserves and stablecoin performance that “allows institutions to move onchain with the certainty required for large-scale institutional stablecoin use cases like treasury management, regulated wrappers, and on-chain collateral.”

Only institutions will be allowed to use USBD, which will have a dedicated DApp designed to offer rigorous know-your-customer (KYC) and know-your-business (KYB) compliance.

Boundary Labs said it has an initial goal of reaching $100 million in total value locked in 2026.

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Leo Jakobson, Modern Consensus editor-in-chief, is a New York-based journalist who has traveled the world writing about incentive travel. He has also covered consumer and employee engagement, small business, the East Coast side of the Internet boom and bust, and New York City crime, nightlife, and politics.