Polymarket, a crypto-driven prediction market recently valued at over a billion dollars, is contemplating the release of its own stablecoin or forging a revenue-sharing agreement with Circle based on USDC holdings on its platform, according to a source with knowledge of the situation. The primary incentive for Polymarket to develop its own stablecoin is to control the interest-generating reserves supporting the substantial volume of Circle’s USDC tokens used for wagering on its platform, the insider revealed. A spokesperson for Polymarket indicated that no definitive decision has been reached regarding the stablecoin initiative. Recent legislation regarding stablecoins in the U.S. has enhanced the appeal of launching such digital assets for both cryptocurrency-focused companies and traditional financial institutions, who are observing the success of stablecoin leaders like Tether and Circle. Despite the appeal, creating a stablecoin presents significant challenges for many firms. Circle, the issuer of USDC, is known for offering revenue-sharing agreements to exchanges, payment providers, and fintech companies to remain competitive in this dynamic market. For Polymarket, establishing its own stablecoin presents a relatively straightforward regulatory challenge, according to the source. The source stated, “Polymarket is securing substantial stablecoin value in their betting pools and seeks a mechanism to capture the yield. In Polymarket’s closed ecosystem, they only need to exchange USDC or USDT for their custom stablecoin, without concern for on and off-ramp complexities. It’s a straightforward and manageable system to develop and secure.” Circle’s representatives were unavailable for immediate comment. The volume of USDC on Polymarket varies with platform betting activity. Notably, around $8 billion in bets were placed during the last U.S. election cycle, and the site saw approximately 15.9 million visits in May, according to SimilarWeb data. The company aims to officially re-establish its U.S. presence by acquiring QCEX, a U.S.-based entity, following the resolution of civil and criminal probes related to its service to U.S.-based bettors.
Polymarket Considers Launching Proprietary Stablecoin Amid Valuation Spike: Insider
