ProShares Rolls Out New ETF Built for Stablecoin Treasuries Under U.S. Rules

TL;DR

• IQMM invests only in U.S. Treasuries maturing within 93 days under GENIUS Act rules.

• Stablecoin supply may reach $2T–$4T by 2030, analysts say.

• ProShares targets issuers needing safe and liquid reserves for daily redemptions.

• Trump family promotes USD1 stablecoin as demand for regulated reserves increases.

ProShares has introduced a new money market exchange-traded fund designed to meet the strict reserve rules for dollar-backed stablecoins in the United States. The launch of the ProShares GENIUS Money Market ETF, known as IQMM, reflects growing demand for highly liquid instruments that comply with the GENIUS Act. The law requires stablecoin issuers to hold reserves backed by safe assets, including short-term U.S. government debt.

The stablecoin market is expanding, and regulators now expect issuers to maintain strict liquidity standards. ProShares built IQMM to match those rules and give issuers a clear option for short-duration assets. Market growth is drawing institutional attention, and new reserve tools are becoming more common as stablecoins gain wider use.

IQMM Targets Stablecoin Reserve Requirements

IQMM invests only in cash and U.S. Treasury bills with maturities of 93 days or less. This matches the GENIUS Act’s requirement that reserves remain liquid and risk-controlled. The structure aims to help issuers meet daily redemption needs without selling longer-dated securities during volatile periods.

ProShares CEO Michael L. Sapir said IQMM was created to serve institutional demand, including stablecoin treasuries and large financial firms. He said the fund offers a conservative approach to cash management while maintaining the convenience of an ETF. The company added that IQMM avoids corporate credit exposure and focuses only on government paper.

The fund provides intraday liquidity through exchange trading and uses same-day settlement features. ProShares said these mechanics can help issuers move reserve assets with greater speed. The design also allows weekly income payouts, which may appeal to institutional cash managers using regulated instruments.

Stablecoin Market Growth Drives Reserve Innovation

The stablecoin market currently sits just under $300 billion in circulation. Policymakers and analysts expect rapid expansion over the next several years. Treasury Secretary Scott Bessent has said the market could reach $2 trillion by 2028. He later suggested it may approach $3 trillion by 2030 as adoption increases.

Wall Street forecasts show wide expectations. Citi issued a base projection of $1.9 trillion by 2030 and outlined a higher scenario of $4 trillion. Standard Chartered has issued a $2 trillion estimate and warned that as much as $500 billion may move out of the U.S. banking system and into stablecoins.

IQMM was built for this environment, where regulated structures are becoming central to market operations. Stablecoin issuers must now demonstrate that reserves are held in compliant, liquid instruments. ProShares said IQMM is shaped to meet those needs with clear alignment to federal rules.

Trump-Linked USD1 Stablecoin Draws New Attention

The launch of IQMM comes as the Trump family promotes its own dollar-pegged stablecoin, USD1. The token is issued by World Liberty Financial and is marketed as an upgraded version of the U.S. dollar. It is designed to track the dollar’s value while using blockchain rails instead of traditional settlement tools.

Don and Eric Trump have said USD1 could help preserve the dollar’s global role as digital money expands. They pointed to rising demand for regulated stablecoins and said private issuers may help modernize U.S. financial infrastructure. They also noted that stablecoin issuers are now among the world’s largest buyers of U.S. Treasury bills.

The Trump family said they entered the market after banks reduced ties with several of their businesses. They argued that blockchain tools can offer more direct control of financial access and reduce reliance on traditional banking networks.

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