Cryptocurrency-based prediction market platform Polymarket is considering two options and reviewing its entry into the stablecoin market.
According to CryptoPolitan on the 22nd (local time), the first option is to introduce a custom stablecoin, and the second is to accept a revenue sharing agreement with Circle based on the amount of USDC held on the platform.
According to the report, the main driver for Polymarket's stablecoin launch is to generate returns from reserves that currently benefit Circle. By issuing a native token, the platform can retain those revenues internally.
Stablecoins have been the main beneficiary of Polymarket's increasing activity. All transactions on the platform are settled in USDC on the Polygon network. This ensures a steady transaction flow and continuous demand for the token.
The stablecoin-related bill passed in the United States last week makes stablecoin issuance an attractive business proposal for both cryptocurrency native companies and traditional financial institutions.
In that sense, launching a stablecoin is challenging for many companies. For example, Circle, the company that created USDC, is known to be terminating revenue sharing agreements with exchanges, payment companies, and other fintech firms. This is to maintain competitiveness in a rapidly changing field.
Polymarket's representative said that no decision has been made regarding the stablecoin issue. However, of the two options, issuing its own stablecoin would be much easier for Polymarket from a regulatory perspective.
According to someone well-versed in this matter, "For Polymarket, it's a closed ecosystem, and all they need to do is enable exchanging USDC or USDT for their custom stablecoin. They don't need to worry about the final on-ramp and off-ramp stages. It's very simple to build and easy to secure and control."
Polymarket has also gained popularity. According to SimilarWeb, over $8 billion in bets were placed during the US election cycle last year, and the site recorded nearly 16 million visits in May. Polymarket also announced plans to revamp its rewards and oracle resolution system.
The new framework, part of the 2028 Election Holding Rewards program, will provide more accurate pricing and easier user migration.
Meanwhile, Polymarket intends to acquire QCEX, an exchange and clearing house with a CFTC license, through a $112 million contract that opens the way for regulated operations in the world's largest financial markets. This is based in the United States. This follows the conclusion of civil and criminal investigations that allowed US-based customers to bet on the platform.
Polymarket has processed over $14 billion in transactions since its launch. In May alone, it recorded monthly trading volumes of over $1 billion and had 20,000-30,000 daily active traders. After Trump's potential re-election in November 2024, the platform moved $2.5 billion in a month, making it one of its busiest periods.
During that surge, there was more activity on bridges for USDC transfers and fund movements.
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