Crypto prediction market Polymarket is considering launching its own stablecoin to gain control over the interest-bearing reserves currently backing USDC deposits on its platform, CoinDesk reported, citing sources familiar with the matter.
The deliberations reflect a broader industry trend as platforms seek to internalize stablecoin-related revenue, particularly in closed ecosystems.
The source told the news outlet that Polymarket is evaluating two paths: introducing a proprietary stablecoin for internal use or entering into a revenue-sharing arrangement with Circle, the issuer of USDC.
Polymarket has not yet made a final decision, a company representative confirmed to CoinDesk.
Since Polymarket operates a closed-loop system, where users trade prediction markets using stablecoins without external payment flows, creating a native dollar-pegged token would require minimal infrastructure changes.
Users could easily convert existing USDC or USDT into the new token, keeping the liquidity and reserve yield within the platform.
The U.S. regulatory environment for stablecoins improved last week with the passage of federal legislation providing a legal framework for issuers. The development has made stablecoin issuance a more viable and appealing strategy for both crypto-native firms and traditional finance players.
Circle has reportedly been offering revenue-sharing agreements to partners such as exchanges and payment providers to maintain competitive positioning. Spokespeople for Circle did not respond to a request for comment.
Polymarket, recently valued at over $1 billion, has seen a surge in activity, including $8 billion in volume during the last U.S. election cycle and over 15 million website visits in May, according to SimilarWeb data.
The company is also preparing to expand its U.S. presence through the acquisition of QCEX, following the resolution of legal issues tied to previous U.S. user activity.
By potentially launching its own stablecoin, Polymarket would join a growing list of platforms seeking to bring value capture closer to the application layer, a shift that could redefine the economics of blockchain-based financial services.