Prediction Market Platform Polymarket Considers Two Options: Custom Token Issuance or Revenue Sharing Agreement with Circle.
Polymarket is exploring the possibility of entering the stablecoin market with two strategic options: issuing a custom stablecoin controlled by the platform itself or accepting a revenue sharing agreement with Circle based on the USDC held by users. This move comes as the world's largest prediction market platform experiences significant growth and expands its legal operations in the US.
Polymarket's primary motivation for considering this step is to benefit from reserve fund yields, which are currently generating profits for Circle. By issuing a native token, the platform could retain this revenue instead of letting it slip away. Currently, all transactions on Polymarket are paid in USDC on the Polygon network, creating a stable transaction flow and sustainable demand for Circle's stablecoin.
The new stablecoin legislation recently passed by the US Congress is making stablecoin issuance an attractive business opportunity for both crypto companies and traditional financial institutions. However, Circle is reportedly ending revenue sharing agreements with exchanges and fintech companies to maintain a competitive edge in the volatile market.
A Polymarket representative stated that no official decision has been made yet, but issuing their own stablecoin is considered much simpler from a legal perspective. An expert noted: "In Polymarket's case, this is a closed ecosystem. They only need a mechanism to convert USDC or USDT to a custom stablecoin without worrying about fiat deposit/withdrawal infrastructure."
Significant Growth and Legal Expansion
Polymarket is experiencing impressive growth with over $8 billion in bets placed during the previous US election and nearly 16 million visits in May alone. Total transaction value since its founding has exceeded $14 billion, with May alone reaching over $1 billion. The platform maintains 20,000-30,000 daily active users.
Notably, after Donald Trump's re-election in November 2024, Polymarket processed $2.5 billion in transactions in just one month, marking the platform's busiest period with significant USDC transfers and robust activity across blockchain bridges.
Polymarket is also planning to acquire QCEX – a CFTC-licensed exchange – for $112 million, paving the way for legal operations in the world's largest financial market. This deal was announced after the platform resolved investigations related to allowing US users to place bets.
The platform is improving its reward system and oracle mechanism within the "Election Holding Rewards 2028" program, aimed at enhancing market price accuracy and increasing users' ability to move flexibly between prediction markets.
