ProShares Launches IQMM ETF to Support Stablecoin Reserves Under GENIUS Act Rules

• ProShares launches IQMM ETF to help stablecoin issuers meet GENIUS Act reserve rules.

• IQMM invests only in short term US Treasuries to support compliant stablecoin reserves.

• Trump linked USD1 stablecoin adds political dimension to digital dollar expansion.

ProShares has introduced a new exchange-traded fund focused on stablecoin reserves. The firm launched the ProShares GENIUS Money Market ETF under the ticker IQMM. The product aligns with reserve standards under the GENIUS Act. It invests only in short-term U.S. Treasury securities. The launch reflects rising demand for compliant reserve management tools.

📌 @ProShares launches GENIUS Money Market ETF (IQMM)

ProShares announced the GENIUS Money Market ETF (ticker: IQMM), positioned as a money market ETF designed to hold eligible reserve assets aligned with the GENIUS Act framework and potentially serve as a reserve vehicle for… pic.twitter.com/B31wn96EbS

— CryptoPotato Official (@Crypto_Potato) February 19, 2026

Stablecoin issuers must hold one-to-one reserves in safe and liquid assets. Therefore, many firms now seek simple and regulated Treasury exposure. Industry data shows issuers held more than $150 billion in Treasuries by late 2025. As scrutiny increases, issuers look for structures that support daily liquidity. ProShares designed IQMM to meet that need.

ETF Built for Stablecoin Reserve Rules

ProShares structured IQMM to qualify as eligible backing for payment stablecoins. The fund holds Treasury bills and related government instruments. It avoids corporate debt and credit risk. Moreover, the structure supports principal stability and liquidity. This focus helps issuers manage large reserve balances with clarity.

The ETF trades on public exchanges throughout the day. Investors can settle trades on the same day. In addition, the fund plans weekly income distributions. It uses a floating net asset value and dual NAV features. These tools help institutions move large sums without operational delays.

ProShares set the net expense ratio at 0.15%. While retail investors can access the fund, institutions remain the core audience. Stablecoin issuers can place reserves in a compliant vehicle. As a result, they reduce the burden of building internal Treasury desks.

Institutional Focus and Market Infrastructure

IQMM relies on established ETF infrastructure. Therefore, issuers gain transparency and standardized reporting. Institutions can adjust positions without interrupting daily cash management. Furthermore, the exchange-traded format supports intraday liquidity. These features attract firms that manage large pools of capital.

ProShares manages more than $95 billion across its platforms. In recent years, it has expanded into crypto-linked strategies. The launch of IQMM deepens ties between asset managers and digital asset firms. Regulators continue to push for stronger reserve standards. Consequently, firms now seek products that align with those expectations.

However, market observers note potential stress risks. Heavy redemptions during volatility could strain money market funds. Therefore, liquidity oversight will remain critical as stablecoin adoption grows.

Trump-Linked Stablecoin Enters the Market

At the same time, World Liberty Financial has introduced a dollar-backed stablecoin called USD1. The company links to President Donald Trump and his family. USD1 aims to track the value of the U.S. dollar. The move highlights growing private involvement in digital dollar products. Just recently, World Liberty Financial revealed  plans for World Swap to cut global remittance costs using USD1 stablecoin.

Since 1792, the federal government has overseen U.S. currency issuance. However, private stablecoin issuers now shape parts of the digital payment system. The Trump family entered crypto after banks reduced business ties following January 6 events. They later expanded into digital platforms after social media bans. Their entry into stablecoins adds a political dimension to digital dollar growth. Additionally, Barclays has invested in Ubyx to better understand stablecoin settlement within regulated financial systems.

Stablecoin expansion continues to draw regulatory attention. Lawmakers review broader digital asset market structure proposals. As oversight increases, issuers seek compliant and scalable reserve tools. Products like IQMM respond directly to that shift in demand.