Polymarket Eyes Own Stablecoin, Aims to Capture Yield in ‘Closed Ecosystem’
Prediction market giant Polymarket is considering launching its own native stablecoin, a strategic move that would allow the company to directly control and profit from the interest generated by massive user deposits on its platform. The company is evaluating this option against a less likely revenue-sharing deal with USDC issuer Circle.
The Motivation: Owning the Yield
The core reason behind the move is financial. Polymarket currently holds a large amount of customer funds in Circle’s dollar-pegged stablecoin, USDC.
While users trade with these funds, the interest earned from the underlying reserves that back the USDC goes to Circle. A source familiar with the company’s plans said Polymarket’s motivation is simply to “own the yield-generating reserves.”
By creating its own stablecoin, Polymarket could hold the reserve assets itself, capturing the interest and turning its massive deposit base into a significant new revenue stream.
With a recent valuation over $1 billion and betting volumes hitting $8 billion during the last US election cycle, this “yield” represents a substantial financial opportunity.
An “Easy Lift” in a Closed System
Launching a stablecoin is typically a complex regulatory and technical challenge, but Polymarket’s unique structure makes it a surprisingly straightforward option.
The platform operates as a “closed ecosystem,” where users deposit crypto and trade internally without needing constant connections to the traditional banking system.
“In the case of Polymarket, it’s a closed ecosystem and all they really need to do is to be able to exchange USDC or USDT into whatever their custom stablecoin is,” the source explained.
“They don’t have to worry about the last mile on ramp and off ramp. That’s a very simple thing to build, and easy to secure and control.”This would require minimal changes to the platform’s existing infrastructure.
Favorable Regulatory Winds
The timing of this consideration is no coincidence. The regulatory environment for stablecoins in the US has become significantly clearer with the passage of new federal legislation like the GENIUS Act.
This has made issuing a compliant stablecoin a more attractive and viable strategy for both crypto-native firms and traditional financial players.
This improved regulatory climate makes launching a native token a much more appealing path for Polymarket than attempting to negotiate a revenue-sharing deal with Circle.
Sources indicate Polymarket has “little illusion” that a favorable deal with Circle is likely, as the issuer is not known for being generous with such agreements.
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