Polymarket Weighs Stablecoin Launch to Secure Transaction Yields Amid $1B Monthly Volume Surge *Key points: Captures platform’s strategy to redirect earnings from reserves, aligns with 2028 upgrade plans and regulatory shifts*

Polymarket, a crypto-based prediction market platform, is exploring options to enter the stablecoin market, aiming to leverage its position as a growing hub for speculative trading. The platform is considering two paths: launching a customized stablecoin or pursuing a revenue-sharing agreement with Circle, the issuer of USDC. The move follows rising transaction volumes on Polymarket, which currently settle in USDC on the Polygon network, creating a steady demand for the token. By controlling its stablecoin, Polymarket could retain yield from reserves that currently benefit third-party partners.

The primary motivation for the initiative is financial autonomy. Polymarket’s current reliance on USDC allows Circle to capture revenue from reserves held on the platform. By introducing a native stablecoin, the company could redirect those earnings in-house, aligning incentives with its user base. A source close to the matter noted that Polymarket’s ecosystem is “closed,” requiring only seamless integration with existing stablecoins like USDC or USDT. This structure simplifies regulatory compliance and operational logistics, as the platform does not need to manage fiat on-ramps or off-ramps for individual users.

Regulatory developments in the U.S. have further incentivized the move. Recent legislation around stablecoins has created a more structured environment for crypto-native firms to issue their own tokens. However, the landscape remains challenging. Circle, a key player in the space, has been phasing out revenue-sharing deals with partners to maintain competitiveness. This shift limits Polymarket’s ability to rely on third-party partnerships, making a self-managed stablecoin a more attractive long-term strategy.

Polymarket’s growth trajectory underscores the urgency of innovation. The platform has processed over $14 billion in trades since its launch, with $1 billion in monthly volume recorded in May 2025. Its user base includes 20,000 to 30,000 active daily traders, a figure that spiked to 30,000 during November 2024 after Donald Trump’s re-election. During this period, the platform facilitated $2.5 billion in trades in a single month, highlighting the surge in demand for stablecoin transfers and cross-chain activity.

The potential stablecoin could enhance liquidity in prediction markets by creating native economic incentives. A Polymarket representative emphasized that the platform is finalizing its reward and oracle-resolution system as part of a broader 2028 Election Holding Rewards program. These upgrades aim to improve pricing accuracy and user migration, further solidifying the platform’s role in the DeFi ecosystem. Additionally, Polymarket is negotiating a $112 million acquisition of QCEX, a CFTC-licensed exchange and clearinghouse, to expand its regulated operations in the U.S. This follows the resolution of prior investigations into its compliance with U.S. jurisdictional rules.

While no final decision has been announced, the strategic advantages of a custom stablecoin are clear. By reducing dependence on external partners and capturing yield from its growing transaction base, Polymarket could strengthen its position as a leader in the prediction market space. The move also aligns with broader trends in crypto, where platforms seek to integrate stablecoins to streamline operations and expand financial utility for users. As the regulatory framework for stablecoins continues to evolve, Polymarket’s approach may set a precedent for other crypto-native firms seeking to diversify their revenue models.