Polymarket - a prediction market platform using blockchain technology and cryptocurrency - is currently valued at 1 billion USD. According to close sources, the company is actively considering issuing its own stablecoin or moving towards a revenue-sharing agreement with Circle - the issuer of the USDC stablecoin.
Although the final decision has not been made, this move clearly shows Polymarket's ambition to control the massive profit stream arising from the stablecoin reserve assets "locked" in their betting pools.
Currently, most Polymarket users place bets using USDC - a stablecoin fully backed by actual USD. However, the profit generated from this USD reserve (yield) belongs to Circle, not Polymarket. This is the reason driving Polymarket to consider deploying a "homegrown" stablecoin, which would allow them to:
Independently control and leverage the profits generated from the USD reserves they hold.
Simplify operations as Polymarket is a closed ecosystem, not requiring users to convert between fiat and crypto through on-ramp/off-ramp gateways like open stablecoins.
Enhance security and control by only integrating an internal exchange mechanism between USDC/USDT and their own stablecoin.
According to the disclosure, Polymarket currently locks a large amount of stablecoins in prediction pools but has no way to exploit the yield from these assets. Issuing their own stablecoin will help them fully utilize the capital circulating internally through a simple, easily deployable, and highly secure model.
Especially, the legal landscape in the US is more favorable than ever for stablecoin projects. Just 4 days ago, President Donald Trump signed the GENIUS Act, a historic law establishing a clear legal framework for the stablecoin sector. The act requires stablecoins to be 1:1 backed by real assets, undergo transparent audits, and comply with anti-money laundering regulations. This is seen as a crucial turning point, paving the way for both blockchain technology companies and traditional financial institutions to legally participate in the stablecoin market.
