Circle Internet Financial has announced a partnership with on-chain prediction market Polymarket to migrate its settlement infrastructure from a bridged version of USDC to the native stablecoin issued directly by Circle. The transition, set to occur over the next few months, will see Polymarket replace the currently used USDC.e (a bridged asset on Polygon) with native USDC for all trading collateral and settlements.
Polymarket, which operates on the Polygon network, currently automatically converts deposits from blockchains like Ethereum, Solana, Arbitrum, and Base into the bridged USDC.e. The shift to native USDC is designed to eliminate reliance on cross-chain bridges, which introduce additional security risks and operational complexities. "Using USDC will support a consistent, dollar-denominated settlement standard that enhances market integrity and reliability as participation on the platform continues to grow," said Shayne Coplan, founder and CEO of Polymarket.
Circle CEO Jeremy Allaire framed the move as a strategic partnership, stating, "Polymarket has been at the forefront of innovation in marrying the speed of information with the speed of markets, and with the partnership we are building, we bring the utility and speed of USDC to provide the best possible experience for Polymarket users." The change is expected to simplify settlement mechanics, reduce friction for users in deposits and redemptions, and align Polymarket with how USDC functions on other major networks.
The news comes amid a boom in the prediction market sector, with major crypto exchanges like Gemini, Coinbase (in partnership with Kalshi), and Crypto.com (via its OG platform) recently launching their own offerings. Retail broker Robinhood and sportsbook DraftKings have also entered the space. USDC, with a market capitalization of approximately $70.77 billion, is the second-largest stablecoin behind Tether's USDT.
