Polymarket eyes stablecoin launch to capture yield from locked USDC reserves

Adam Forsyth

July 22, 2025

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Key Takeaways

Polymarket is considering launching its own stablecoin to retain yield from USDC reserves used on the platform.
The move follows regulatory clearance to re-enter the US market and a $112M acquisition of QCEX, a licensed derivatives exchange.

Polymarket, the largest crypto prediction market in the world, is exploring whether to issue its own stablecoin or enter a revenue-sharing agreement with Circle, according to a person familiar with the matter, as reported by CoinDesk.

Polymarket’s main incentive for launching its own stablecoin is to earn yield from the reserves that currently benefit Circle. By issuing a native token, the platform could keep that revenue in-house. A company representative said no final decision has been made.

The potential stablecoin launch coincides with Polymarket’s broader push back into the US market. In July, the company agreed to acquire QCEX, a CFTC-licensed exchange and clearinghouse, in a $112 million deal that clears the path for regulated operations in the world’s largest financial market.

A person familiar with the matter said Polymarket holds significant stablecoin value in its betting pools and is looking for a way to capture the yield. Since the platform operates within a closed system, it only needs to support simple swaps between USDC or USDT and its own token, without the need for complex off-ramp infrastructure.

Polymarket’s decision could significantly impact the platform’s economics. Over $8 billion in bets were placed during last year’s US election cycle, and the site saw nearly 16 million visits in May, according to SimilarWeb.

This month, Polymarket also announced plans to overhaul its reward and oracle-resolution system. The new framework, part of its 2028 Election Holding Rewards program, will offer more accurate pricing and easier migration for users.

At the same time, the Department of Justice and CFTC dropped their investigations into Polymarket’s past operations, clearing lingering legal uncertainties.