Polymarket Weighs Launching Its Own Stablecoin Amid USDC Yield Concerns

Polymarket, a leading crypto-based prediction market recently valued at over $1 billion, is considering launching a proprietary stablecoin to capture yield from reserves currently backing USDC used on its platform. According to a source familiar with the matter, the alternative is a potential revenue-sharing deal with USDC issuer Circle.

The primary motivation behind a custom stablecoin is financial control. With billions in betting volume—around $8 billion during the last U.S. election cycle—Polymarket locks up significant USDC in its markets. Currently, the yield from those reserves benefits Circle. By issuing its own token, Polymarket could redirect that yield internally without relying on external partners.

Polymarket has not yet finalized its decision. A representative confirmed that the stablecoin strategy remains under consideration.

Recent U.S. stablecoin legislation has made issuance more appealing to both crypto-native and traditional finance firms. While launching a stablecoin involves regulatory and technical challenges, Polymarket's closed ecosystem simplifies the process. “They don’t need full fiat on-ramps or off-ramps—just a seamless swap between USDC and their internal stablecoin,” said the source. “It’s easier to secure and control.”

Meanwhile, Circle has been actively pursuing revenue-sharing deals with fintech and exchange partners to maintain market dominance as competition from issuers like Tether intensifies.

Polymarket is also preparing to reenter the U.S. market by acquiring domestic exchange QCEX, following resolution of regulatory actions related to U.S.-based users.

The platform attracted 15.9 million visits in May alone, highlighting strong user engagement and underlining the financial potential of controlling stablecoin infrastructure within the ecosystem.

Stablecoins, betting markets, and ecosystem control are increasingly converging—Polymarket’s next move could signal a broader shift in how prediction platforms manage liquidity and yields.