The gap between stablecoins and traditional finance just got narrower. ProShares launched its GENIUS Money Market ETF (ticker: IQMM) on February 19, 2026, making it the first exchange-traded fund explicitly designed to qualify as a stablecoin reserve asset under the GENIUS Act. The fund holds exclusively short-term U.S. Treasury securities with maturities of 93 days or less, charges a 0.15% expense ratio, and offers same-day settlement with weekly income distributions.
As of February 20, 2026, the stablecoin market stands at roughly $300 billion in circulation, with Tether's USDT and Circle's USDC commanding the vast majority of that float. Every one of those dollars needs a matching dollar in reserve. IQMM is ProShares' bet that an ETF wrapper is the cleanest way to hold those reserves.
The First ETF Purpose-Built for Stablecoin Treasuries
ProShares, which manages over $95 billion in ETF and mutual fund assets, positioned IQMM as infrastructure rather than a speculative product. CEO Michael L. Sapir said the fund "will be an attractive cash management alternative for institutional investors, including stablecoin treasuries."
The product targets a specific regulatory gap. The GENIUS Act, signed into law on July 18, 2025, established the first comprehensive federal framework for U.S. payment stablecoins. Under the legislation, every dollar of stablecoins in circulation must be backed by an equivalent dollar of high-quality liquid assets. The permitted list includes U.S. currency, insured bank deposits, Treasury securities with a remaining maturity of no more than 93 days, short-term repurchase agreements, money market funds invested solely in those assets, and tokenized versions of any of the above.
IQMM threads the needle by investing 100% of its portfolio in Treasury bills and related instruments that fall within that 93-day window. It is not just Treasury-eligible. It is GENIUS Act-eligible by design.
Why 93 Days Matters More Than You Think
The 93-day maturity cap is the GENIUS Act's liquidity backstop. Stablecoin issuers need to honor redemptions on demand. If reserves are locked in 10-year bonds, a sudden surge in redemptions could force fire sales at a loss, exactly the dynamic that broke the Silicon Valley Bank playbook in 2023.
By limiting eligible Treasuries to 93 days or less, the law ensures that reserves are almost cash-equivalent. Any bill in the portfolio will mature within three months regardless of market conditions. IQMM's structure mirrors this philosophy: the fund prioritizes principal preservation and liquidity over yield optimization.
The ETF also offers a dual Net Asset Value (NAV) and intraday trading, meaning stablecoin issuers can enter or exit positions during market hours without waiting for end-of-day pricing. Weekly distributions provide regular income without the operational friction of daily sweeps.
The $300 Billion Reserve Problem
Stablecoin issuers currently hold over $150 billion in U.S. Treasuries as of late 2025. That number is growing fast. Some Wall Street forecasts project the total stablecoin market reaching $2 trillion by 2028, with more aggressive estimates placing it at $4 trillion. Treasury Secretary Scott Bessent has publicly stated that stablecoins could become "a significant part of the financial system" within the decade.
For context, if the stablecoin market doubles from its current $300 billion to $600 billion, that means roughly $600 billion in new demand for short-dated U.S. government debt. The U.S. Treasury Department has quietly acknowledged that stablecoin reserve demand is becoming a meaningful buyer at bill auctions.
ProShares is not the only firm eyeing this market. But it is the first to ship a product that explicitly brands itself as GENIUS Act-compliant. The 0.15% expense ratio undercuts most actively managed money market funds, and the ETF wrapper provides transparency that private trust structures cannot match.
What This Means for Stablecoin Users and Crypto Cardholders
If you hold USDC or USDT on a crypto card, IQMM is not something you will buy directly. But it affects you indirectly. Better reserve infrastructure means lower risk of the kind of depeg events that rattled USDC in March 2023 when Silicon Valley Bank collapsed with $3.3 billion of Circle's reserves trapped inside.
The GENIUS Act's reserve requirements, combined with purpose-built products like IQMM, create a more transparent and liquid reserve stack for issuers. When reserves are held in publicly traded, daily-priced ETFs rather than opaque bank accounts or private portfolios, the market can audit them in real time.
For users spending stablecoins through cards like Coinbase or Crypto.com, this is the plumbing upgrade that makes the "backed 1:1" claim more verifiable than ever.
TradFi Keeps Building Crypto Infrastructure
IQMM is part of a broader pattern. ProShares already operates crypto-linked ETFs including Bitcoin and Ether futures products. But this fund does something different: it builds infrastructure that crypto needs but cannot provide for itself.
Stablecoin issuers do not have a U.S. banking charter (with rare exceptions like Stripe's Bridge, which recently secured OCC conditional approval). They cannot buy Treasuries directly at auction. They rely on intermediaries. An ETF wrapper simplifies that chain: one ticker, one custodian, one NAV, daily transparency.
The timing also matters. Congress has been pressuring both the crypto industry and traditional banks to reach a consensus on stablecoin yield rules, with multiple White House meetings in recent weeks. IQMM arrives as that debate intensifies, giving issuers a compliant tool they can point to when regulators ask how reserves are managed.
This is how adoption actually works: not with a single breakthrough moment, but with each missing piece of infrastructure getting filled by firms that see the $300 billion opportunity and are willing to ship products that fit the regulatory mold.
FAQ
What is the ProShares GENIUS Money Market ETF? IQMM is a money market ETF that invests exclusively in U.S. Treasury securities with maturities of 93 days or less. It is designed to qualify as a permitted reserve asset under the GENIUS Act for stablecoin issuers.
What is the GENIUS Act? The GENIUS Act, signed into law on July 18, 2025, is the first comprehensive federal framework for U.S. payment stablecoins. It requires issuers to maintain 1:1 reserves in high-quality liquid assets including cash, short-term Treasuries, and insured deposits.
What is IQMM's expense ratio? IQMM charges a 0.15% net expense ratio, making it competitive with other institutional money market products.
Can retail investors buy IQMM? Yes. While the fund is primarily designed for institutional stablecoin treasuries, it trades on a public exchange and is available to all investors as a cash management tool.
How does this affect stablecoin holders? Better reserve infrastructure reduces depeg risk and increases transparency. When issuers hold reserves in publicly traded ETFs, the market can verify backing in real time rather than relying on periodic attestation reports.
Overview
ProShares launched IQMM on February 19, 2026, creating the first money market ETF built to satisfy the GENIUS Act's stablecoin reserve requirements. The fund holds only sub-93-day U.S. Treasuries, charges 0.15%, and offers same-day settlement with weekly distributions. With stablecoins approaching $300 billion in circulation and forecasts projecting up to $4 trillion by 2028, IQMM addresses a real infrastructure gap: giving issuers a transparent, liquid, and compliant way to park reserves. For the millions of users who spend stablecoins through crypto cards and DeFi protocols, this is the backend upgrade that makes 1:1 backing more credible and more auditable.
Recommended Reading
- The White House Confiscated Phones to Force Banks and Crypto Into a Stablecoin Yield Deal, and Both Sides Blinked
- Stripe's Bridge Wins OCC Conditional Approval for a National Bank Trust Charter, Putting Stablecoin Issuance Under Federal Oversight
- The European Parliament Just Backed the Digital Euro by 443 Votes, Setting Up a 2027 Pilot and 2029 Launch
