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Polymarket Considers Native Stablecoin to Capture Yield as It Eyes U.S. Comeback
- Polymarket is considering launching a stablecoin or striking a revenue-sharing agreement with Circle.
- The move could help Polymarket capture yield from USDC/USDT reserves locked on the platform.
- U.S. legislation has recently made stablecoin issuance more viable for firms.
Cryptocurrency prediction market Polymarket is exploring two strategic options to capture stablecoin yield generated by user activity on its platform: creating its own stablecoin or entering a revenue-sharing agreement with Circle, the company behind USDC. The move is designed to secure the yield that currently flows to stablecoin providers from reserves held on Polymarket’s platform.
Although no firm decision has been made, the company sees value in redirecting revenue back into its ecosystem, particularly as all trades on Polymarket currently use USDC via the Polygon network. A source close to the company noted that Polymarket’s closed-loop design means it could roll out a native stablecoin with minimal infrastructure, mainly by allowing users to convert USDC or USDT into the new coin.
Related: Trump’s Crypto Push May Lock In US Dollar Supremacy, Says Treasury Chief
New Framework Encourages Issuance
The timing aligns with recent passage of US legislation that makes issuing a stablecoin more attractive to both crypto-native and traditional firms. However, launching a stablecoin remains operationally challenging, even as Circle continues to negotiate competitive revenue-sharing deals to maintain its edge.
Polymarket is also pursuing a U.S. comeback via the planned acquisition of QCEX, a CFTC-regulated exchange, in a US$112 million (AU$170.8 million) deal. The acquisition marks a turning point after previous legal issues with U.S. regulators over unauthorised access by domestic users.
The platform has processed over US$14 billion (AU$21.4 billion) in trades since its inception, including US$2.5 billion (AU$3.81 billion) in November 2024 following Trump’s re-election. In May 2025 alone, the platform recorded over US$1 billion (AU$1.53 billion) in trading volume and was visited by nearly 16 million users. These figures underscore the economic incentive to introduce a native asset that retains yield internally rather than allowing it to accrue to external stablecoin issuers.
Related: BoE’s Andrew Bailey Hits the Brakes on Bank-Issued Stablecoins, Bets on Tokenised Deposits
Author
Rachel Lourdesamy
Rachel is a freelance writer based in Sydney with experience within financial services, marketing, and corporate communications in the APAC region. An avid reader and a graduate of the University of Sydney, she covers topics including business, finance and human interest.
