Polymarket, the popular cryptocurrency-based prediction platform, is considering a major move: entering the stablecoin market. Two options are on the table – either launching its own custom stablecoin or striking a revenue-sharing deal with USDC issuer Circle.
The reason? To gain greater control over yield from its reserves, which currently benefit Circle.
🔹 Stable Bets, Growing USDC Demand
All transactions on Polymarket are settled in USDC on the Polygon network. This ensures a steady flow of activity and sustained demand for the token. But Polymarket wants more than just facilitating – it wants a piece of the returns USDC generates.
🔹 Launch a Coin or Share Profits?
With the recent U.S. legislation opening the door for regulated stablecoins, issuing its own token has never been more appealing. While no final decision has been made, insiders admit that launching a proprietary stablecoin may be the simpler and safer route.
“Polymarket operates within a closed ecosystem. They just need to swap USDC or USDT for their own token. No need to deal with on- and off-ramps,” said one person familiar with the matter.
🔹 Massive Growth and Expansion Plans
Polymarket is booming. In May alone, the platform recorded nearly 16 million website visits, and during the 2024 U.S. election cycle, users placed over $8 billion in bets.
The platform is also preparing a major overhaul of its reward and resolution system, using decentralized oracles. The new system, aimed for rollout by the 2028 election, promises more accurate pricing and easier user migration.
🔹 Aiming for Regulatory Approval
In a bold step, Polymarket is looking to acquire QCEX – a CFTC-licensed exchange and clearinghouse – in a $112 million deal. If successful, this would give Polymarket regulated access to the world’s largest financial market and complete its transformation from a niche betting platform to a serious DeFi player.
Polymarket now stands at a pivotal crossroads – will it remain a prediction market, or evolve into a full-fledged financial ecosystem with its own stablecoin?
#Polymarket , #Circle , #Stablecoins , #USDC , #CryptoNews
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