Coinbase backs ProShares IQMM ETF for stablecoin reserves

Coinbase Global Inc. has invested in the ProShares GENIUS Money Market ETF (IQMM), a fund designed to serve as a compliant reserve asset for stablecoin issuers under new federal law. The strategic move deepens the cryptocurrency exchange's involvement in the financial infrastructure supporting dollar-pegged digital tokens as the industry prepares for stricter regulatory standards.

The investment, announced on June 2, centers on a financial product built to align with the reserve requirements of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. That legislation, which was signed into law in July 2025, creates a federal framework for payment stablecoins, mandating they be backed one-to-one by high-quality, liquid assets. The IQMM ETF is structured around short-term U.S. Treasury securities with maturities of 93 days or less, along with cash and cash-equivalent instruments.

Coinbase stated that as stablecoins become core to financial infrastructure and see wider use in payments and settlements, the industry requires more sophisticated tools for managing the reserves backing them. The company framed the investment as supporting the full "stablecoin...