Crypto prediction platform Polymarket is considering issuing its own stablecoin

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Polymarket, the crypto-powered prediction market, is considering entering the stablecoin market with two options on the table. The first one is to introduce its own customized stablecoin, or accept a revenue-sharing deal with Circle based on the amount of USDC held on the platform.

According to reports, Polymarket’s main drive for launching its stablecoin is to earn yield from the reserves that currently benefit Circle. By issuing a native token, the platform could keep that revenue in-house.

Stablecoins have become the main beneficiaries of Polymarket’s rising activity. All transactions on the platform settle in USDC on the Polygon network. This ensures a steady transaction flow and sustained demand for the token.

A deal with Circle or customize its stablecoin?

Legislation around stablecoins passed in the US last week makes issuing a stablecoin an attractive business proposition for crypto native firms and more traditional finance players alike.

To that end, launching a stablecoin is hard for many companies. For instance, Circle, the company that created USDC, is known to be ending revenue-sharing deals with exchanges, payment companies, and other fintechs. The reason behind this is to stay competitive in a field that is changing so quickly.

A Polymarket representative said no decision has yet been made on the stablecoin question. However, of the two options, for Polymarket, issuing its own stablecoin is a much easier lift from a regulatory standpoint.

According to a person familiar with the matter, “In the case of Polymarket, it’s a closed ecosystem and all they really need to do is to be able to exchange USDC or USDT into whatever their custom stablecoin is. They don’t have to worry about the last mile on ramp and off ramp. That’s a very simple thing to build, and easy to secure and control.”

In addition, Polymarket has grown in popularity.  According to SimilarWeb, over $8 billion in bets were placed during last year’s US election cycle, and the site saw nearly 16 million visits in May. Also, Polymarket announced plans to overhaul its reward and oracle-resolution system. 

The new framework, part of its 2028 Election Holding Rewards program, will offer more accurate pricing and easier migration for users.

Meanwhile, Polymarket wants to buy QCEX, a CFTC-licensed exchange and clearinghouse, in a $112 million deal that clears the path for regulated operations in the world’s largest financial market. It is based in the US. This follows the closure of civil and criminal investigations into its allowing US-based customers to place bets on its platform.

Polymarket has handled more than $14 billion in trades since its launch. It had more than $1 billion in monthly volume in May alone, with 20,000 to 30,000 active daily traders.  After Trump’s re-election in November 2024, the platform moved $2.5 billion in a single month, making it one of its busiest times. 

During that surge, there were a lot of USDC transfers and more action on the bridges to move money around.

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