Polymarket is moving its coins. The prediction platform is announcing a complete overhaul over 2-3 weeks, with on the menu: the launch of its own stablecoin, dubbed Polymarket USD. A change that marks the end of its dependence on USDC.e (Circle's bridged version of USDC), even if the new token will remain backed 1:1 by USDC.
🔍 What's going on?
Polymarket is migrating from a bridged architecture to an in-house infrastructure. This move had already been in the pipeline since February, but the platform is now spelling out the details: the switch will be "transparent" for most users, with automatic approvals. Experienced traders and those using APIs, on the other hand, will have to use a dedicated function to wrap their USDC or USDC.e in the new Polymarket USD.
.Meanwhile, Circle is doubling down by launching a wrapped version of Bitcoin, called cirBTC. This new currency will replicate Bitcoin on the blockchain, aimed initially at institutions, before expanding to Circle's DeFi ecosystem and Arc network. Coinbase has already taken this route in 2024 with its cbBTC, a riposte to BitGo's wBTC (then associated with TRON founder Justin Sun).
💡 Why does it matter?
For you trading on Polymarket, this proprietary stablecoin opens a door that regulators in the US keep closed: that of yields paid directly on deposits. Polymarket isn't based in the USA, so it can offer interest without worrying about the regulatory wars raging in Congress. This is a direct competitive advantage.
The problem? Circle remains under fire. The company claims to stand up for regulation and security, but has repeatedly failed to help victims of exploits related to its USDC. This lack of responsiveness is eroding its credibility with users, precisely at a time when it is trying to establish itself on the wrapped bitcoin market.
📊 Our opinion
We see it clearly: Polymarket is freeing itself from too heavy a dependence on Circle by creating its own stablecoin. It's a bullish decision for the platform. It gains autonomy, can offer services that Circle no longer controls, and positions itself outside US jurisdiction. The fact that Circle continues to drag its unmanaged exploits through the mud only accelerates this move. Traders should expect a better user experience on Polymarket, but also keep an eye on whether this new stablecoin will find the traction it promises.
✅ To remember
- Polymarket launches Polymarket USD, stablecoin backed 1:1 by the USDC
- Circle criticized for repeated delays in dealing with exploit victims
- Polymarket may offer returns, outside US jurisdiction
And what do you think?Do you trust this type of proprietary stablecoin, or would you rather stick with blue chips like the USDC?
🔎 Also to be read
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