Polymarket, a prediction platform using crypto technology, is considering launching a custom stablecoin to profit from reserve assets.
This move will help the platform reduce its dependence on Circle's USDC and allow Polymarket to directly control interest-bearing collateral assets supporting user bets.
Will Polymarket Enter the US Stablecoin Market?
According to multiple reports, the company is still weighing between issuing its own stablecoin or accepting a revenue-sharing deal with Circle. No final decision has been made.
The primary motivation is believed to be financial. Polymarket holds a large amount of USDC, but currently, Circle is the one profiting from those supporting reserves.
By issuing its own USD-pegged token, Polymarket could earn money from this cash flow.
Community comments about Polymarket's stablecoin rumor. Source: X (Formerly Twitter)The amount of USDC on the platform varies with market activity. During the 2024 US election cycle, over $8 billion was bet.
This news comes after Polymarket's efforts to return to the US market through the acquisition of crypto exchange QCEX. This occurred after the US Department of Justice (DOJ) dropped its investigation of the company related to unauthorized US user access.
Meanwhile, Polymarket's potential move reflects a broader trend.
When the GENIUS Act became law last week, some US banks—including JPMorgan and Bank of America—have begun exploring or developing their own tokenized USD.
These bank-issued stablecoins aim to compete with Circle's USDC and Tether's USDT in both consumer and institutional environments.
By launching its own platform stablecoin, Polymarket could join the growing list of fintech and financial companies seeking to vertically integrate token issuance, reserve management, and platform economics.
However, legal risks remain high. Any new issuance could require compliance with US stablecoin regulations and may be subject to oversight under the GENIUS Act framework.
Currently, Polymarket is still exploring its options. But this decision could have significant impacts on the prediction market's revenue model—and for the broader stablecoin ecosystem.
