The $20 billion prediction market is overhauling its infrastructure and launching a native stablecoin to streamline trading as it prepares for a major U.S. expansion.

Polymarket founder and CEO Shayne Coplan (Paul Morigi/Getty Images for Haddad Media)

Key Takeaways:

• Polymarket is set to execute a complete exchange upgrade soon, featuring a new 1:1 USDC-backed collateral asset named Polymarket USD to supplant the bridged USDC.e.
• This transition to Polymarket USD seeks to mitigate bridge-associated risks and grant the platform enhanced authority over settlement and liquidity, with the upcoming POLY token anticipated to facilitate governance.
• In the wake of registering with the CFTC and achieving a valuation exceeding $20 billion, Polymarket’s efforts to reconstruct its U.S. footprint involve bringing trading and dispute resolution more under direct management through these planned tokens and infrastructure updates.

According to a post on X, Polymarket anticipates releasing a new 1:1 USDC-backed collateral token shortly as part of a comprehensive trading platform revamp.

The company characterizes the upgrade as a «full exchange upgrade,» which encompasses a newly constructed trading engine, refreshed smart contracts, and the introduction of a collateral token known as Polymarket USD. This token will take the place of USDC.e, a bridged iteration of Circle’s USDC stablecoin that originates on Ethereum (ETH) and is wrapped for cross-chain utility.

While USDC.e serves as a proxy for native USDC, it depends on bridge infrastructure that can create additional risk and friction. By adopting its own collateralized token pegged one-to-one with USDC, Polymarket appears to be targeting more direct oversight of settlement and liquidity.

This update aligns with previous indications that a wider token strategy is being developed. Back in October, Polymarket’s chief marketing officer confirmed plans for a POLY token, though no timeline or functional specifics were disclosed at that time.

That token has not yet been officially announced. However, its potential function has already attracted significant interest.

Historically, Polymarket has depended on UMA’s «optimistic oracle» for determining market results. Within this framework, users suggest outcomes and UMA token holders vote to resolve disputes. The architecture prioritizes consensus over accuracy, a design critics argue may allow large token holders to influence results.

Recent controversies, particularly those surrounding geopolitically themed markets, have highlighted these limitations. Should POLY be utilized to internalize resolution, it could signal a shift toward in-house governance of truth.

One theoretical model involves separating trading from governance. Users would maintain betting activities in stablecoins like Polymarket USD, while POLY (if introduced) would manage dispute resolution and market curation. This division could enable the platform to value honesty independently of trading outcomes.

Polymarket’s initiative arrives as it reestablishes its U.S. footprint. The platform suspended domestic operations in 2022 but filed registration with the Commodity Futures Trading Commission in July 2025. Since that registration, it has reported significant growth and a valuation surpassing $20 billion.

The upcoming token launch and infrastructure modifications indicate the company is consolidating control over both trading and truth—the two fundamental pillars defining prediction markets.

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