Coinbase Invests in ProShares Money Market ETF to Expand Stablecoin Reserve Infrastructure

Coinbase is expanding its investment in infrastructure used to manage stablecoin reserves. The move comes as stablecoins gain wider use in payments and settlement, driving demand for reserve-asset management and liquidity tools.

Crypto-focused media outlet BlockBeats reported on June 2 that Coinbase will invest in ProShares' Genius Money Market ETF, known as IQMM.

IQMM is a money market ETF designed to meet the requirements of the GENIUS Act. BlockBeats said it is the first money market ETF structured for use as a stablecoin reserve asset.

The fund primarily invests in US Treasuries with remaining maturities of 93 days or less, along with cash and cash equivalents. That matches the intent of the GENIUS Act, which requires stablecoin issuers to maintain one-to-one reserves backed by high-quality, highly liquid assets.

Coinbase said reserve management, liquidity management, and issuance and redemption infrastructure are becoming increasingly important as stablecoins expand their use across payments, settlement and the broader digital economy.

The company said stablecoin reserve assets will eventually broaden beyond US Treasuries to include a wider range of high-quality cash-like instruments, including ETFs, money market funds and tokenized assets. It described IQMM as one of the key pieces of infrastructure that could support that shift.