Top U.S. cryptocurrency exchange Coinbase said Tuesday it is investing in ProShares' stablecoin reserves ETF.
The fund, called the GENIUS Money Market ETF, has $22 billion in assets under management and is structured to hold assets that meet the legal reserve requirements for dollar-backed stablecoins in the U.S.
"In addition to offering a full-stack stablecoin payments solution, Coinbase is supporting tools that can help stablecoins scale responsibly," the exchange said. The crypto platform is closely associated with Circle's USDC stablecoin.
ProShares' stablecoin reserve ETF, ticker IQMM, "is built around a simple idea: as stablecoins scale, issuers need reserve tools built for this market, not repurposed for traditional cash management," Coinbase added.
Coinbase did not disclose the amount of money it is investing in the fund.
The GENIUS Act, passed into law last year, was considered landmark legislation as it laid the regulatory groundwork for issuing stablecoins in the U.S. The bill requires that stablecoin issuers hold highly liquid assets, like Treasurys or cash, to back the crypto tokens 1 for 1.
Launched in February, ProShares' IQMM fund generated $17 billion in trading on its first day.
The stablecoin legislation passed last year will not officially take effect until, at the earliest, near the beginning of 2027. Regulators are currently ironing out rules related to issuing stablecoins.