Coinbase Invests in ProShares IQMM ETF for Stablecoin Reserve Management
Coinbase said it invested in ProShares’ IQMM as a reserve-focused fund for dollar-backed stablecoins, with the ETF holding $22 billion in assets and launched as U.S. stablecoin rules move toward implementation.
Coinbase said Tuesday it is investing in ProShares’ GENIUS Money Market ETF, ticker IQMM, a reserve-focused fund structured to hold assets that meet the legal reserve requirements for dollar-backed stablecoins in the U.S. The exchange did not disclose the size of the investment. The update adds that the fund has $22 billion in assets under management and that Coinbase framed the move as support for tools to help stablecoins scale responsibly alongside its broader stablecoin payments push. Coinbase, which is closely associated with Circle’s USDC stablecoin, said IQMM is designed specifically for stablecoin reserve needs rather than traditional cash management. The fund launched in February and generated $17 billion in trading on its first day. The backdrop is the GENIUS Act, passed into law last year, which requires stablecoin issuers to hold highly liquid assets such as Treasurys or cash to back tokens 1 for 1, though the law is not expected to take effect until at least near the beginning of 2027 as regulators continue writing rules.
- GENIUS Money Market ETF: ProShares’ IQMM fund, structured to hold assets intended to satisfy legal reserve requirements for dollar-backed stablecoins in the U.S.
- GENIUS Act: A U.S. law that sets the regulatory framework for stablecoins, including rules requiring highly liquid reserves backing dollar-backed tokens 1 for 1.
- Dollar-backed stablecoins: Digital tokens designed to maintain a value tied to the U.S. dollar and backed by reserve assets such as cash or Treasurys.