Polymarket Eyes Launching Stablecoin to Capture Reserve Profits

Polymarket, the fast-growing crypto prediction market, is exploring the launch of its own stablecoin to capitalize on the yield generated from reserves backing USDC deposits.

According to a CoinDesk report citing insiders, the firm is evaluating whether to internalize stablecoin revenue or strike a revenue-sharing deal with Circle, the issuer of USDC.

A source familiar with the matter revealed that Polymarket sees an opportunity to retain more value within its closed ecosystem. By issuing a proprietary dollar-pegged token, the platform could tap into the same yield that currently flows to Circle when users deposit USDC to place bets.

Closed ecosystem makes transition easier

Polymarket’s structure is already optimized for such a transition. Users transact in stablecoins within a closed-loop system, which minimizes the need for external payment integrations. If the company chooses to move forward with its own stablecoin, users could simply convert their existing USDC or USDT into the new token with minimal disruption.

A spokesperson for Polymarket confirmed to CoinDesk that no final decision has been made.

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Industry-wide trend toward stablecoin monetization

The move reflects a broader trend across crypto platforms looking to capture more of the value tied to stablecoin reserves. As yield-bearing stablecoins grow in popularity, more firms are beginning to see the upside of controlling the assets behind the tokens. Whether Polymarket chooses to go solo or partner with Circle, the stablecoin arms race is clearly heating up.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.