The post Polymarket Launches Its Own Stablecoin, Reduces USDC Dependence appeared first on Coinpedia Fintech News
Polymarket, one the biggest prediction market has announced a major platform upgrade that includes launching its own stablecoin, Polymarket USD. The prediction market will migrate from USDC.e to the new collateral token, which will be backed 1:1 by USDC.
The aims to improve trading efficiency and giving Polymarket more control over its liquidity.
Polymarket Introduces Its Own USD Stablecoin
In a recent tweet post Polymarket developers team confirmed that Polymarket USD will replace USDC.e as the main collateral token on the platform. The transition will happen over the next two to three weeks alongside upgrades to smart contracts, order books, and the trading engine.
For most users, the migration will happen automatically. The platform’s frontend will handle the conversion with a one-time approval. However, power users and API traders will need to manually wrap USDC or USDC.e into Polymarket USD using the platform’s collateral onramp contract.
The platform said the update will also improve order matching, simplify orders, and enhance fee distribution. A new SDK will help developers migrate bots, though existing order books will be cleared.
This change comes as Polymarket sees rapid growth, recording over $22 billion in trading volume in the first 11 months of 2025.
Users Question Trust and Adoption, Warn Risk to Circle
The announcement triggered strong reactions from users. One X user said the move could become “the biggest threat for CRCL,” as Polymarket is currently paying around 3.5%–4% to Circle on deposits, which could push it to reduce this dependency.
If large platforms may start launching their own stablecoins, it may gives more control, lets them earn from deposits, and keeps users engaged.
While, not everyone is convinced the new stablecoin will succeed.
Another X user pointed out that many institutions have tried launching stablecoins but failed to scale. They said that trust remains the most important factor, and Polymarket’s brand alone may not be enough.
Upgrade Requires Changes for Bots and Integrations
Polymarket is also releasing a new CLOB client SDK to support the migration. The update will automatically handle the switch from the old system to the new one, but developers must upgrade to the latest version.
Bots and integrations will need to re-sign orders using the new structure. TypeScript, Python, and Go clients will be supported, with documentation provided before launch.
During the upgrade, existing order books will be cleared, and the platform will enter a short maintenance window. Polymarket said it will announce the exact timing at least one week in advance.
If the rollout goes smoothly, the new stablecoin could streamline trading and improve platform performance