Polymarket Eyes Stablecoin Launch or Partnership with Circle
Polymarket, a prominent cryptocurrency prediction market, is actively considering two strategic avenues to harness the yield generated from stablecoin transactions on its platform. The options involve either launching a proprietary stablecoin or entering a revenue-sharing agreement with Circle, the issuer of the USDC stablecoin. This initiative is aimed at reclaiming potential revenue that is presently directed to external stablecoin providers from the reserves held within Polymarket’s ecosystem.
While no definitive conclusion has been reached, Polymarket recognises the potential benefits of reinvesting this revenue back into its operations. Currently, all transactions on the platform utilise USDC through the Polygon network. Sources close to the company suggest that its unique closed-loop system would facilitate the introduction of a native stablecoin with minimal infrastructure requirements; users could seamlessly convert USDC or USDT into the new asset.
Legislative Support for Stablecoin Issuance
The exploration of a stablecoin comes at a pivotal moment, coinciding with new U.S. legislation that enhances the attractiveness of stablecoin issuance for both cryptocurrency-native and traditional firms. However, launching a stablecoin is not without its complexities, as Circle continues to secure advantageous revenue-sharing arrangements to sustain its competitive position in the market.
In tandem with these developments, Polymarket is working towards re-establishing its presence in the U.S. market through the planned acquisition of QCEX, a CFTC-regulated exchange, in a deal valued at US$112 million (approximately AU$170.8 million). This acquisition represents a significant pivot for the company, who has faced previous legal scrutiny from U.S. regulators over alleged unauthorised access by domestic users.
Since its inception, Polymarket has facilitated over US$14 billion (around AU$21.4 billion) in trades, including a remarkable US$2.5 billion (approximately AU$3.81 billion) processed in November 2024, coinciding with Trump’s re-election. Notably, May 2025 saw the platform surpass US$1 billion (about AU$1.53 billion) in trading volume, attracting close to 16 million users. These compelling metrics illustrate the economic rationale behind introducing a native stablecoin that would retain yields within the platform, rather than relinquishing them to external issuers.
In conclusion, as Polymarket mulls its options for stablecoin integration, its efforts reflect a broader trend towards innovation within the cryptocurrency space, particularly in response to favourable regulatory landscapes. The potential for a self-sufficient stablecoin could not only enhance Polymarket’s revenue streams but also solidify its competitive position in the rapidly evolving landscape of digital finance.
