Crypto prediction market Polymarket is exploring a move into the stablecoin space, with two strategic paths under consideration: launching its own Polymarket stablecoin or securing a revenue-sharing agreement with Circle, the issuer of USDC.
Sources familiar with the matter say Polymarket is motivated by the opportunity to earn yield on stablecoin reserves currently held in USDC. At present, all trades on the platform are settled using USDC on the Polygon blockchain, creating consistent transaction flow and demand for the token. However, the interest generated from these reserves goes to Circle. By issuing a native Polymarket stablecoin, Polymarket could retain that income in-house.
The platform’s growing activity has already made stablecoins key beneficiaries, and the firm now sees Polymarket stablecoin issuance as a potentially lucrative step forward, especially in light of the new U.S. stablecoin legislation passed last week. The updated legal framework is expected to open the door for more crypto firms and financial institutions to enter the market.
Launching a stablecoin still remains a complex and resource-heavy process. Meanwhile, Circle is reportedly winding down revenue-sharing deals with exchanges and fintech firms in a bid to remain competitive in an increasingly crowded and fast-moving landscape.
As Polymarket evaluates its next move, the decision could signal a broader trend of crypto platforms seeking greater control over their revenue models, either by working with established stablecoin issuers or by going independent.
Rising Popularity and Regulatory Moves
This comes as stablecoins emerge as major beneficiaries of Polymarket’s growing user base and transaction volume. According to SimilarWeb data, the platform saw nearly 16 million visits in May alone, and over $8 billion in bets were placed during last year’s U.S. election cycle.
In response to its rising popularity, Polymarket recently announced an overhaul of its rewards and oracle resolution system. The new structure, part of its 2028 Election Holding Rewards initiative, aims to deliver more accurate market pricing and a smoother migration process for users.
At the same time, the company is making moves toward regulatory compliance. Polymarket plans to acquire QCEX, a U.S.-based exchange and clearinghouse licensed by the Commodity Futures Trading Commission (CFTC), in a $112 million deal. The acquisition would pave the way for regulated operations in the world’s largest financial market and follows the resolution of previous civil and criminal investigations related to allowing U.S. customers to place bets on the platform.
The company’s dual-track approach, seeking both stablecoin independence and regulatory legitimacy, reflects the evolving pressures and opportunities in the fast-changing crypto industry, particularly following recent U.S. legislation making stablecoin issuance more attractive to both fintech startups and traditional financial players.
Since its launch, Polymarket has processed over $14 billion in total trading volume. In May alone, it recorded more than $1 billion in trades, with daily active users ranging between 20,000 and 30,000. One of its busiest periods came after Donald Trump’s re-election in November 2024, when the platform saw $2.5 billion in trading volume in just one month.