Crypto: Polymarket Plans to Launch Its Own Stablecoin

Polymarket, the crypto prediction platform, which currently uses USDC for all its transactions, is considering creating its own stablecoin to capture the revenues currently collected by Circle. Two options are on the table: a revenue-sharing agreement with Circle or an in-house stablecoin.

Polymarket’s Ambition: Taking Control of Value

Polymarket, the giant of crypto prediction, no longer wants to play second fiddle. Stablecoins are booming this year, and on a platform like this, transactions are soaring, all denominated in USDC. This raises a burning question. Why continue enriching Circle when you can capture this windfall yourself?

It is with this mindset that Polymarket is considering launching its own stablecoin today. A strategic, carefully considered decision that could profoundly transform the platform’s economic balance.

Behind this initiative lies a clear calculation: stablecoins are no longer just tools for stability. They have become revenue generators, fueled by the reserves they accumulate.

Currently, every dollar that passes through Polymarket enriches Circle’s coffers via USDC. A loss of revenue the platform intends to correct.

But the decision has not yet been made. Two options are on the table. Sources indicate that Polymarket first wants to try to negotiate a revenue-sharing agreement with Circle.

This is an unlikely hypothesis given the past practices of the USDC issuer. On the other hand, Polymarket plans to take the plunge by creating an in-house stablecoin, fully integrated into its ecosystem. And this second path is looking increasingly attractive.

Issuing a Stablecoin: A Strategic and Regulatory Choice

In today’s climate, launching a stablecoin is no longer a marginal act reserved for pioneers. The recent US stablecoin legislation has clarified the rules of the game. Indeed, this law has made the field more readable for well-established players. For Polymarket, whose model relies on constant crypto flows, this opens a very concrete window of opportunity.

Unlike other platforms that must manage on and off ramps to fiat, Polymarket operates in a closed ecosystem. This means it only needs to allow exchange between USDC/USDT and its own token to make it functional. No need for banking licenses or complicated partnerships: issuing a custom stablecoin would be “simple to secure and control,” according to sources close to the matter.

Circle, on its side, is not known for generosity. It has already ended several revenue-sharing agreements with major partners to preserve its competitiveness.

It is safe to say that Polymarket has little illusion about this option. In short, launching its own stablecoin is not only feasible but almost logical from an economic and regulatory point of view.

Rapid Growth Demands Bold Choices

Polymarket is no small player. With more than 14 billion dollars in total volume processed since its creation, and 1 billion in a single month in May alone, this crypto prediction platform is experiencing growth that commands respect.

During Donald Trump’s reelection, volumes even exploded to 2.5 billion dollars over 30 days. A dynamic fueled by a daily active user base ranging between 20,000 and 30,000 traders.

In this context, controlling its own monetary infrastructure becomes almost a necessity. Especially since Polymarket now aims at the big American market, with the acquisition of QCEX, a CFTC-approved exchange. This strategic 112 million dollar move could mark a new era for the platform: one of regulated expansion but with high potential.