Polymarket, an encrypted prediction platform, is considering launching a custom Stablecoin to earn returns from reserve assets.
The move will distract the platform’s trust from Circle’s USDC and will directly control the collateral backing user bets of interest to Polymarket.
Multinationality to enter the US stubcoin market?
According to some reports, the company has decided whether to issue its own Stablecoin or accept a revenue sharing arrangement with Circle. No final decision has been made.
The motivation is reportedly financial. Polymarket owns a large amount of USDC, but Circle is currently collecting yields from those supported reserves.
By issuing its own dollar-covered token, Polymarket was able to monetize this stream internally.
The amount of USDC on the platform fluctuates with market activity. Over $8 billion bets were placed during the 2024 US election cycle.
The news follows Polymarket’s efforts to re-enter the US market through the acquisition of Crypto Exchange QCEX. This comes after DOJ stopped investigating companies related to unlicensed access by US users.
Polymarket’s potential movement, on the other hand, reflects a broader trend.
With the Genius Act becoming law last week, several US banks, including JpMorgan and Bank of America, have begun exploring or developing their own tokenized dollars.
These bank-issued stubcoins aim to compete with circle USDC and tether USDT in both consumer and institutional settings.
By launching platform-native Stablecoin, Polymarket can join a growing list of Fintech and financial players seeking to vertically integrate token issuance, preliminary control and platform economy.
Still, the risk of regulation remains high. The new publication may require compliance with Stablecoin regulations and potential monitoring based on the Genius Act framework.
For now, Polymarket is still investigating its options. However, this decision could have a significant impact on the forecast market revenue model and the broader Stablecoin ecosystem.
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