Polymarket, the cryptocurrency prediction platform recently valued at $1 billion, is actively considering launching its own stablecoin to internalize yield from user reserves. According to insider reports, the firm is weighing this move against accepting a revenue-sharing agreement with Circle, issuer of the USDC stablecoin that currently underpins betting activity on the platform.
The primary motivation is financial: Polymarket holds substantial USDC reserves to facilitate user bets—peaking at $8 billion during the 2024 U.S. election cycle—but yield generated from these assets currently flows to Circle. By issuing a custom dollar-pegged token, Polymarket could retain this revenue stream. A source emphasized, "Polymarket is locking a lot of stablecoin value... they want some kind of mechanism to get the yield."
This deliberation coincides with Polymarket's U.S. reentry following the Department of Justice closing its investigation into the platform's historical accessibility to American users. The company is acquiring U.S.-based exchange QCEX to facilitate this expansion.
The potential shift aligns with broader industry trends accelerated by the GENIUS Act, which became law last week. Traditional financial institutions like JPMorgan and Bank of America are now exploring tokenized dollars, intensifying competition against established stablecoins like USDC and USDT. Regulatory hurdles remain significant, however, as any new stablecoin would require compliance under the GENIUS framework.
Notably, issuing a native stablecoin presents fewer technical challenges for Polymarket compared to other firms. A source explained its closed ecosystem simplifies implementation since users only need to exchange external stablecoins (like USDC or USDT) for the platform's token without complex off-ramps. Circle has not publicly commented on potential revenue-sharing negotiations.