Polymarket is exploring the possibility of creating its own stablecoin or entering into a partnership with Circle, the issuer of USDC. This comes as a response to the growing activity of users utilizing USDC on the platform.
Financial Motivation for Creating a Stablecoin
The motivation behind a Polymarket stablecoin is primarily financial. Currently, a large portion of the platform’s activity is conducted in USDC. By issuing its own dollar-pegged token, Polymarket would be able to control and earn the yield from the reserve assets backing the stablecoin—an income stream that currently benefits Circle.
No Final Decision Yet
While internal discussions are ongoing, a spokesperson for Polymarket confirmed that no final decision has been made. The company is still exploring its options, balancing the benefits of owning its own stablecoin against the operational complexity and regulatory obligations that come with it. A potential revenue-sharing model with Circle is also being considered, which would allow Polymarket to earn a portion of the yield based on the amount of USDC held on its platform.
Impact of New Legislation on the Stablecoin Market
The recent passage of stablecoin legislation in the U.S. has created favorable conditions for platforms looking to enter the space. Regulatory clarity is attracting both crypto-native companies and traditional finance players to the stablecoin market. With the success of major issuers like Tether and Circle, launching a stablecoin is now seen as a credible and profitable strategy for Polymarket.
The decision by Polymarket to launch its own stablecoin or collaborate with Circle could significantly reshape the platform, turning it into a key player in the stablecoin economy.
