Polymarket Explores Stablecoin Launch to Optimize USDC Reserves Amid U.S. Regulatory Shifts

Crypto prediction platform Polymarket is exploring the possibility of launching its own stablecoin to optimize the use of its USDC reserves, which currently back deposits on its platform. Sources familiar with the matter reveal the company is considering two primary strategies: either introducing a proprietary dollar-pegged token for internal operations or negotiating a revenue-sharing agreement with Circle, the issuer of USDC. A company representative confirmed the deliberations but emphasized no final decision has been made.

The potential move aligns with a broader industry trend where platforms seek to internalize stablecoin-related revenue streams, particularly within closed ecosystems. Polymarket’s closed-loop system, which relies on stablecoins for prediction market trades without external payment flows, positions the company to issue a native token with minimal infrastructure adjustments. Users could seamlessly convert existing USDC or USDT into the new token, ensuring liquidity and reserve yield remain within the platform.

Recent regulatory developments in the U.S. have bolstered the viability of stablecoin initiatives. A federal law passed last week established a legal framework for stablecoin issuance, addressing prior uncertainties. This shift has encouraged both blockchain-native firms and traditional finance entities to explore stablecoin strategies. Circle, a key player in the space, has reportedly been engaging partners like exchanges and payment providers through revenue-sharing deals to maintain its competitive edge.

Polymarket’s valuation now exceeds $1 billion, reflecting surging user engagement. The platform saw $8 billion in trading volume during the 2024 U.S. election cycle and recorded over 15 million website visits in May, according to external analytics. The company is also advancing plans to strengthen its U.S. presence by acquiring QCEX, a move contingent on resolving past regulatory hurdles related to user activity in the country.

Introducing a stablecoin could position Polymarket among a growing cohort of platforms aiming to capture value closer to the application layer. By retaining reserve yields and reducing reliance on third-party issuers, the company may redefine the economic dynamics of blockchain-based financial services. However, the decision hinges on balancing regulatory compliance, user convenience, and competitive pressures in an evolving market landscape.