The crypto-powered prediction platform Polymarket is reportedly evaluating a significant strategic shift, considering the launch of its own stablecoin or a revenue-sharing agreement with Circle, the issuer of USDC.
According to sources, the move aims to tap into additional revenue streams from assets locked in betting pools until disputes are resolved. The platform, valued at over $1 billion, is weighing these options to optimize the use of its substantial USDC reserves.
Polymarket’s primary motivation is financial: it currently holds a large volume of USDC, with the yield from these reserves benefiting Circle. By issuing a native stablecoin, the company could retain this income internally, leveraging its closed ecosystem where simple swaps between USDC and a custom token would suffice. Alternatively, a revenue-sharing deal with Circle could provide a portion of the yield based on the amount of USDC held on the platform, offering a less resource-intensive path. No final decision has been made, with a company representative confirming that discussions are still ongoing.
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This exploration comes as Polymarket seeks to re-enter the U.S. market following regulatory clearance and its $112 million acquisition of QCEX, a licensed derivatives exchange.
The timing aligns with recent U.S. stablecoin legislation, creating a favorable environment for such initiatives. However, the company must navigate regulatory challenges and operational complexities, balancing the potential benefits against the risks of launching a new token or negotiating with an established player like Circle.
