Polymarket Weighs Proprietary Stablecoin Launch vs. USDC Partnership Amid Regulatory Tailwinds

Polymarket, the crypto prediction platform recently valued at $1 billion, is considering whether to launch its own stablecoin or maintain its partnership with Circle's USDC. This strategic move aims to capitalize on yield opportunities from reserves supporting the significant USDC volumes locked in its prediction markets.

The deliberation comes as U.S. stablecoin legislation enhances the attractiveness of this business model. While Circle has offered revenue-sharing agreements to platforms like Polymarket to sustain its market dominance, issuing a native stablecoin could provide both regulatory and economic benefits for the prediction market platform.

"Polymarket is locking substantial stablecoin value in its betting pools and seeks a mechanism to capture that yield," revealed a source familiar with the discussions. Although no final decision has been reached, Polymarket's unique position could make stablecoin issuance more viable compared to traditional exchanges.