Coinbase Backing ProShares' GENIUS Money Market ETF To Build Stablecoin Reserve Infrastructure

• Coinbase backed ProShares' IQMM fund, the first money market ETF designed for stablecoin reserves under the GENIUS Act.
• The fund invests in short-term U.S. Treasuries, cash, and cash equivalents to support dollar-backed stablecoin reserves.
• Coinbase also partnered with Checkout.com to enable stablecoin payments for more than 1,000 enterprise merchants.

Coinbase Global Inc. (COIN) shares fell more than 4% on Tuesday afternoon, even after the cryptocurrency exchange announced two stablecoin-focused initiatives for expanding the infrastructure supporting digital dollar adoption.

The company announced an investment in ProShares' GENIUS Money Market ETF (IQMM), which launched in February, and a new partnership with payments processor Checkout.com to enable stablecoin payments for more than 1,000 enterprise merchants. 

Despite the announcements, COIN stock fell over 4% in midday trade on Tuesday amid weakness in Bitcoin (BTC) and the broader cryptocurrency market. On Stocktwits, the retail sentiment around COIN remained in the ‘bearish’ zone, while chatter stayed in the ‘low’ levels over the past day.

Coinbase Invests in IQMM

Coinbase described IQMM as the “first money market ETF designed to be eligible for stablecoin reserves under the GENIUS Act.” The legislation requires stablecoins to be backed one-to-one by high-quality, highly liquid assets. Upon its launch, IQMM reportedly generated $17 billion in trading on its first day of trading, according to Eric Balchunas.

Coinbase stated that IQMM invests in short-term U.S. Treasuries with maturities of 93 days or less, along with cash and cash equivalents. The fund is designed to meet reserve requirements outlined in the GENIUS Act, which seeks to establish federal rules for dollar-backed stablecoins. 

The Brian Armstrong-led company said its investment targets a less visible but critical part of stablecoin adoption, like the reserve infrastructure that supports liquidity, issuance, and redemptions. As stablecoin usage expands beyond payments, Coinbase said issuers will need purpose-built reserve products backed by assets such as Treasuries, money market funds, and exchange-traded funds (ETFs) rather than traditional cash-management tools adapted for crypto.

Stablecoin Payments Push

Coinbase’s partnership with payments processor Checkout.com will allow consumers to pay with stablecoins like Circle’s (CRCL) USD Coin (USDC) and Tether (USDT), while merchants continue settling through Checkout.com's existing infrastructure. 

The company said the integration is aimed at reducing friction for businesses as stablecoin adoption expands beyond trading into everyday payments.

COIN’s stock has fallen over 24% this year and nearly 30% over the past 12 months.

Read also: BTC Slips To $67K While Peter Schiff Says Bitcoin's Chart Looks Like A 'Huge Top'

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