Polymarket, a crypto-powered prediction platform, is considering entering the stablecoin market. One option is to create its own stablecoin, while another is to accept a revenue-sharing deal with Circle.
Drive to Create Own Stablecoin
According to reports, Polymarket's main motivation for launching its stablecoin is to earn yield from the reserves currently benefiting Circle. By issuing a native token, the platform could keep that revenue in-house.
Potential Partnership Options
Recent legislation in the US regarding stablecoins has made issuing them an attractive business proposition for both crypto-native and traditional financial firms. However, launching a stablecoin can be challenging for many companies, such as Circle, which has been ending revenue-sharing agreements.
Growing Popularity of Polymarket
Polymarket is also showing growing popularity, with over $8 billion in bets placed during last year's US elections. The platform proposed new plans for revamping its rewards and oracle-resolution system, enhancing pricing accuracy and user migration.
With either the launch of its own stablecoin or a partnership with Circle, Polymarket could significantly expand its ecosystem and create new opportunities within decentralized finance.
