Polymarket Reportedly Considering Launching Its Own Stablecoin to Capture Platform USDC Reserve Yields

According to sources cited by Jinse Finance, the crypto prediction market platform Polymarket is evaluating the possibility of launching its own stablecoin, aiming to capture the returns generated from the substantial reserves currently backed by Circle’s USDC. The platform has not yet made a final decision and is also considering the option of reaching a revenue-sharing agreement with Circle. Since the Polymarket ecosystem is closed, it only needs to enable conversion between USDC and its custom stablecoin, thus avoiding the compliance challenges associated with fiat on- and off-ramps, making the issuance of a stablecoin more feasible both technically and from a regulatory perspective. With the recent passage of stablecoin-related legislation in the United States, issuing stablecoins has become a new profit opportunity for both crypto companies and traditional financial institutions. During last year’s U.S. presidential election, the total amount wagered on the Polymarket platform reached $8 billion, and the site saw 15.9 million visits in May. The company is currently seeking to re-enter the U.S. market through the acquisition of an exchange. Previously, Polymarket faced civil and criminal investigations for allowing U.S. users to place bets, but those cases have now been closed.