Polymarket Eyes Launch of Stablecoin in Bold U.S. Expansion Strategy

Polymarket is actively exploring the launch of its own stablecoin. The initiative would mark a major turning point for the company as it looks to capitalize on stablecoin revenues currently flowing to Circle, the issuer of USDC. 

Amid rising user volumes and an increasingly favorable U.S. regulatory landscape, Polymarket is weighing whether it’s time to bring stablecoin operations in-house, a shift that could generate new revenue streams and enhance long-term financial autonomy.

Monetizing Stablecoin Reserves: A Strategic Pivot

For years, Polymarket has operated using third-party stablecoins like USDC and USDT, with all user transactions conducted within its closed-loop ecosystem. 

While this model has worked well, there’s an important catch: the interest earned on the fiat reserves behind USDC does not go to Polymarket but instead to Circle. In effect, Polymarket provides the platform, but Circle earns a portion of the profits simply by holding user deposits.

Now, the platform is reconsidering that arrangement. According to sources familiar with the matter, Polymarket is seriously evaluating two main options: negotiating a revenue-sharing agreement with Circle or issuing its own proprietary stablecoin. 

While the former may seem like a cooperative solution, Circle’s track record suggests it’s unlikely to give up a share of its reserve earnings. That leaves a homegrown stablecoin as the more viable long-term strategy.

Read also: GENIUS Act Enforces Strict Rules to Prevent Big Tech Dominating U.S. Stablecoin Market

Polymarket’s Ecosystem Makes a Native Token Feasible

What gives Polymarket an edge in this situation is its infrastructure. Unlike many other crypto platforms, Polymarket operates within a self-contained environment where users rarely move funds off-platform. 

This simplifies the technical hurdles of issuing a new token. Converting USDC or USDT into a Polymarket stablecoin would require only minimal back-end adjustments, since users are already familiar with on-platform stablecoin transactions.

Sources close to the company suggest that this internal architecture makes the transition not just technically possible but economically smart. 

Issuing a proprietary stablecoin would allow Polymarket to directly manage the reserves, potentially investing in yield-bearing assets such as short-term U.S. Treasuries, just as Circle does with USDC. The result is a steady new stream of income that stays within the Polymarket ecosystem.

Read also: The Differences of Stablecoin Regulation in the U.S. vs Hong Kong

U.S. Expansion and Regulatory Momentum

The timing of this stablecoin initiative aligns with another major development: Polymarket’s push to re-enter the United States. The company recently finalized a $112 million acquisition of QCEX, a CFTC-licensed exchange and clearinghouse. 

This move provides Polymarket with the regulatory licenses it needs to offer its services legally in the U.S. for the first time in years.

With the regulatory clarity provided by the GENIUS Act and related legislation, stablecoin issuance is no longer a grey area for firms with proper compliance procedures. 

By combining the launch of a native stablecoin with its return to the U.S. market, Polymarket is strategically positioning itself to operate at scale while adhering to legal frameworks.

Founder and CEO Shayne Coplan called the acquisition of QCEX a “turning point” for the company, one that lays the groundwork for Polymarket to fully comply with U.S. financial regulations. 

The acquisition not only legitimizes its business model in the eyes of regulators but also significantly boosts investor confidence as the platform prepares for a new era of growth.

Read also: Senator Tim Scott and Angela Alsobrooks Applaud President Trump's Signing of GENIUS Act for Stablecoin Regulation

Industry Trend: Owning the Infrastructure

Polymarket’s potential stablecoin plan reflects a broader trend across the crypto sector. As stablecoins continue to gain popularity, platforms are increasingly realizing that they can generate revenue by managing these assets themselves rather than relying on third parties. 

A native stablecoin enables greater control over liquidity, reduced dependency on external entities, and a more self-sustaining financial model.

For Polymarket, this is not just about following trends, it’s about leading them. With more than $14 billion in total transaction volume and a growing user base that topped 15 million visits in May 2025, the platform has the scale to support its own token economy. 

During key news events, like U.S. elections, trading volumes have spiked significantly, further validating the need for an efficient and profitable financial infrastructure.

Read also: GENIUS Act Boosts Bitcoin: What the Stablecoin Bill Means for Crypto Market

Risks and Rewards: Calculating the Next Step

While the rewards of launching a stablecoin are clear, revenue, autonomy, and growth, the risks are not to be underestimated. Issuing a stablecoin comes with regulatory scrutiny, operational overhead, and the need to maintain full transparency in how reserves are managed. 

Polymarket would need to ensure that its token is backed 1:1 by safe assets and regularly audited to maintain user trust and regulatory approval.

Still, for a platform with Polymarket’s technical maturity and legal foresight, these challenges may be manageable. As the crypto landscape evolves, platforms that can balance innovation with regulatory compliance are most likely to succeed.

For now, the decision is still under review. A Polymarket spokesperson confirmed that the company is “evaluating its options” but emphasized that no final call has been made. 

Regardless of the outcome, the possibility of a Polymarket stablecoin is already sending strong signals to the industry, and to regulators, that the platform intends to shape the future of prediction markets from both a technological and financial perspective.

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FAQ

Does Polymarket use USDC-E or USDC? 

Polymarket uses USDC (USD Coin), which is a regulated stablecoin. For transactions, Polymarket specifically utilizes USDC on the Polygon network. While you can deposit native USDC, it will be automatically swapped to USDC.e (USDC on Ethereum, bridged to Polygon) for use on the platform.

What are the top 5 stablecoins? 

Based on market capitalization, some of the top stablecoins include:

1. Tether (USDT)

2. USDC (USDC)

3. Ethena USDe (USDE)

4. Dai (DAI)

Does Polymarket have a token? 

No, Polymarket does not have its own token. All trading and rewards for providing liquidity are done in USDC, which is a stablecoin pegged to the U.S. dollar.

What coins are supported by Polymarket? 

Polymarket supports a wide range of popular cryptocurrencies for transfer across different networks. These include ETH, WETH, SOL, POL, USDC, USDT, and DAI. Once transferred to Polymarket, these assets are automatically converted to USDC for trading on the platform.

Does Polymarket use USDT? 

Yes, Polymarket does support USDT among other popular cryptocurrencies for users to transfer to the platform. However, once transferred, all activity on Polymarket is denominated in USDC.

Which network is Polymarket using? 

Polymarket is built on the Ethereum network and primarily uses Polygon technology (a Layer 2 scaling solution). This allows Polymarket to offer a decentralized betting platform with fast and reliable transactions.