ProShares seeks stablecoin reserves with GENIUS Act-compliant Treasury ETF

CoinTelegraph

by Nate Kostar

February 19, 2026

AI-Generated Deep Dive Summary

ProShares has introduced a new money market ETF, the ProShares GENIUS Money Market ETF (IQMM), designed to serve as an eligible reserve asset under the GENIUS Act. This innovative ETF is tailored for stablecoin issuers seeking to meet U.S. regulatory requirements. Unlike traditional government money market funds, IQMM uses a floating net asset value (NAV) based on real-time market pricing and offers same-day settlement, making it ideal for institutional investors managing large-scale reserves. The GENIUS Act establishes criteria for digital assets that can be used as collateral or reserves by stablecoin issuers. ProShares’ ETF is structured to comply with these requirements, ensuring it qualifies as a suitable reserve asset. By focusing exclusively on short-term U.S. Treasurys, IQMM provides a safe and liquid investment option while maintaining alignment with federal regulations. This dual NAV structure—combining a floating NAV for pricing accuracy and a fixed reference price for stability—addresses the unique needs of institutional reserve management. The launch of IQMM marks an important step in bridging traditional finance and cryptocurrency markets. For stablecoin issuers, this ETF offers a compliant and efficient way to meet regulatory reserve requirements. Additionally, IQMM’s intraday trading on exchanges and same-day settlement features provide greater flexibility for institutions managing their liquidity needs. This development underscores the growing integration of blockchain and crypto assets into mainstream financial systems. For readers interested in crypto and blockchain, this ETF highlights the increasing overlap between decentralized finance (DeFi) and traditional financial instruments. By providing a regulated and transparent option for stablecoin issuers to meet reserve requirements, IQMM supports broader adoption of digital assets while maintaining compliance with existing financial regulations. As the crypto market continues to evolve, products like IQMM demonstrate how institutions are leveraging innovative financial tools to navigate regulatory challenges and unlock new opportunities in the digital economy.

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Originally published on CoinTelegraph on 2/19/2026