Coinbase backs ProShares stablecoin reserve fund

Coinbase has invested in ProShares’ GENIUS Money Market ETF, a Treasury-focused fund designed to hold assets that qualify as reserves for payment stablecoins under the GENIUS Act.

The cryptocurrency exchange disclosed an undisclosed investment in the ProShares GENIUS Money Market ETF, known by its ticker IQMM, as demand grows for regulated reserve-management products linked to stablecoins.

“The GENIUS Act requires stablecoin issuers to back their tokens with highly liquid assets, including cash, bank deposits and short-term US Treasury securities.”

Launched in February, IQMM invests exclusively in short-term US Treasury securities and cash-equivalent instruments with maturities of 93 days or less, making it one of the first ETFs specifically designed for stablecoin reserve management.

Coinbase said the investment supports its expanding stablecoin and treasury-management operations, particularly given its role as a key infrastructure provider for Circle’s USDC stablecoin.

The investment follows the passage of the GENIUS Act, which established federal rules governing reserve assets for US dollar-pegged stablecoins and accelerated institutional interest in compliant reserve-management solutions.

The move also comes as lawmakers debate the CLARITY Act and whether stablecoin issuers should be permitted to offer yield on token holdings, an issue that has drawn opposition from major banks including JPMorgan, which argues such products could create an uneven competitive landscape.