Polymarket Eyes Proprietary Stablecoin to Challenge USDC Dominance and Monetize Reserves

Polymarket, a U.S.-based prediction platform, is considering launching its own stablecoin to decrease dependence on Circle's USDC and generate yield from the collateral supporting user bets. The company is evaluating options between creating a native dollar-pegged token or forming a revenue-sharing partnership with Circle.

This initiative arises as Polymarket holds substantial USDC reserves, with Circle currently earning yield on these assets. During high-activity periods, such as the 2024 election cycle, the platform handled over $8 billion in bets, underscoring the financial benefits of controlling stablecoin economics.

This strategic shift follows Polymarket's return to the U.S. market after acquiring QCEX, subsequent to the Department of Justice concluding its investigation into the platform. The MOVE reflects the growing institutional adoption of stablecoins, with major financial institutions like JPMorgan and Bank of America developing tokenized dollars following the enactment of the GENIUS Act.