Don't want to rely on Circle? Rumored Polymarket is considering issuing its own stablecoin, with the Genius Act passing as assistance.

Polymarket considers issuing its own stablecoin to reduce reliance on Circle.

According to (CoinDesk), sources indicate that Polymarket, a cryptocurrency prediction market platform valued at over $1 billion, is considering launching its own stablecoin or reaching a revenue-sharing agreement with Circle based on the platform's $USDC holdings. A company spokesperson confirmed that no final decision has been made regarding the stablecoin issue.

Polymarket's motivation to launch its own stablecoin is primarily to take control of the interest-bearing reserves that support the large amount of Circle's $USDC tokens on the platform. Insiders say, "Polymarket has locked in a significant value of stablecoins in its betting pool, so they want some mechanism to earn income." Currently, Circle collects the earnings generated from these supporting reserves, and by issuing its own dollar-pegged token, Polymarket can internalize this revenue stream.

The amount of $USDC on the platform fluctuates with betting activity. During the 2024 U.S. election cycle, the platform's betting volume exceeded $8 billion, and the site attracted about 15.9 million visits in May. Due to Polymarket's closed-loop system, users can easily convert existing $USDC or $USDT into new tokens, keeping liquidity and reserve earnings within the platform.

(GENIUS Act) provides regulatory clarity as financial giants rush into the stablecoin market.

The (GENIUS Act) passed by the U.S. last week provides a legal framework for stablecoin issuers, making it more feasible for both crypto-native companies and traditional financial operators to issue stablecoins. After the bill became law, several U.S. banks, including JPMorgan Chase and Bank of America, began exploring or developing their own tokenized dollars, which are intended to compete with Circle's $USDC and Tether's $USDT.

Further Reading
Love it or hate it? JPMorgan CEO: Stablecoins are really unnecessary, but if the market needs them, I'll issue them.
Citi CEO: Considering issuing stablecoins and tokenized deposits! Is the era of banking crypto warfare upon us?
Bank of America considers entering the stablecoin market! Rumored to collaborate with JPMorgan and Citi, just waiting for legislative clarity.

Insiders point out that for Polymarket, from a regulatory perspective, issuing its own stablecoin is relatively easy to achieve. 'In Polymarket's case, it's a closed ecosystem, and what they really need to do is to be able to swap $USDC or $USDT for their custom stablecoin. They don't have to worry about last-mile deposit and withdrawal issues.'

According to reports, Circle has been offering revenue-sharing agreements to exchanges, payment companies, and other fintech firms to maintain its competitive position in the rapidly evolving market. A Circle spokesperson did not immediately respond to a request for comment.

Prediction market platform actively expands, redefining blockchain financial services.

Polymarket's potential move reflects a broader trend of fintech and financial firms seeking vertical integration of token issuance, reserve management, and platform economy. By launching a platform-native stablecoin, Polymarket may join an increasing number of platforms looking to capture value closer to the application layer, a shift that could redefine the blockchain-based financial services economy.

The company is currently preparing to expand its U.S. business by acquiring the American exchange QCEX, following the conclusion of the U.S. Department of Justice's investigation into the company's unauthorized access by U.S. users. Although regulatory risks still exist, any new issuance may need to comply with U.S. stablecoin regulations and be overseen by the (GENIUS Act) framework, but this decision could have significant implications for the revenue model of prediction markets and the broader stablecoin ecosystem.

Click here for more news about 'Polymarket'.
Polymarket makes a comeback! Invests heavily to acquire QCEX derivatives exchange, returning to the U.S. market.
Polymarket escapes a crisis! U.S. regulators terminate investigation and will collaborate with xAI to layout the prediction market.
U.S. elections increase buzz! Polymarket is rumored to be raising $200 million; will it become a unicorn?

This content is generated from information compiled by Crypto Agent and reviewed and edited by (Crypto City). It is still in the training stage and may contain logical biases or information inaccuracies. The content is for reference only and should not be considered investment advice.

'Don't want to rely on Circle? Rumored Polymarket is considering issuing its own stablecoin, with the Genius Act passing as assistance.' This article was first published in 'Crypto City'.