ProShares seeks stablecoin reserves with GENIUS Act-compliant Treasury ETF
Summary
A new ETF focuses solely on short-term US Treasurys, designed to meet the needs of stablecoin issuers under US reserve requirements. This innovative financial product aims to enhance stability in the cryptocurrency market.
Key Insights
What is the GENIUS Act and how does it relate to stablecoin reserves?
The GENIUS Act is U.S. legislation that mandates stablecoin issuers to back their tokens 1:1 with highly liquid assets, such as short-term U.S. Treasury securities with maturities up to 93 days, to ensure stability and redemption reliability.
What makes the ProShares IQMM ETF suitable for stablecoin reserves?
The ProShares GENIUS Money Market ETF (IQMM) invests 100% in short-term U.S. Treasuries with maturities up to 93 days, complies with Rule 2a-7 for government money market funds, uses a market-based NAV for transparency, offers T+0 settlement, weekly distributions, and a 0.15% expense ratio, aligning precisely with GENIUS Act reserve requirements.