Coinbase Invests in ProShares Stablecoin Reserve ETF

Coinbase bought an undisclosed stake in ProShares’ GENIUS Money Market ETF (IQMM), the company announced Tuesday. IQMM holds cash and short-term U.S. Treasury securities that meet reserve requirements set by the GENIUS Act for dollar-pegged stablecoins.

ProShares launched IQMM in February to provide a publicly traded option for assets that qualify as stablecoin reserves. The fund invests only in short-term U.S. Treasuries and cash-equivalent instruments with maturities of 93 days or less.

Coinbase framed the purchase as consistent with its expanding stablecoin business and cash-management services. The exchange is a major infrastructure provider for the USDC stablecoin and has an operational interest in regulated, liquid vehicles for reserve management. The size of Coinbase’s stake was not disclosed.

The GENIUS Act, enacted in June 2025, requires payment stablecoins to be backed by highly liquid assets such as cash, bank deposits and short-term U.S. Treasury securities. IQMM was created to match those statutory definitions.

Lawmakers continue to debate broader digital-asset rules. The Digital Asset Market Clarity Act, known as the CLARITY Act, recently advanced through the Senate Banking Committee and could reach a full Senate vote. The bill includes provisions about whether stablecoin issuers may pay interest on token balances.

Banking executives have warned that allowing crypto firms to offer yield on stablecoin balances could create an uneven competitive landscape with traditional banks. JPMorgan CEO Jamie Dimon argued banks would oppose the bill in its current form.

Faryar Shirzad, Coinbase’s chief policy officer, described the CLARITY Act as “the biggest financial regulatory bill” since the Dodd-Frank law.

ProShares markets IQMM as a liquidity-focused ETF that offers daily trading and transparency typical of exchange-traded funds. Stablecoin issuers and custodian banks can use such funds to hold high-quality, short-duration assets in public markets that align with the GENIUS Act definitions.