Polymarket, Circle Partner to Shift Prediction Market Settlement to Native USDC

Polymarket and Circle Internet Group announced a strategic partnership to migrate Polymarket’s settlement infrastructure from bridged stablecoins to native USDC, aiming to improve reliability, capital efficiency and market integrity as the prediction market expands.

Summary

Polymarket will transition from bridged USDC.e on Polygon to native USDC issued by Circle’s regulated entities, which can be redeemed one‑for‑one for U.S. dollars, reducing reliance on cross‑chain bridges and enhancing settlement efficiency.

The shift is intended to support a consistent, dollar‑denominated settlement standard that boosts market reliability and scalability, a key consideration as participation in Polymarket’s prediction markets continues to grow.

Circle’s CEO Jeremy Allaire said the partnership merges robust stablecoin infrastructure with Polymarket’s innovative market model, while Polymarket founder Shayne Coplan emphasized that native USDC will support a more reliable settlement framework for users.

Why Native USDC Matters

Currently, Polymarket uses bridged versions of USDC (USDC.e) on Polygon as collateral for trades. Bridged tokens represent assets locked on a different blockchain, creating additional risk and complexity. By migrating to native USDC, Polymarket eliminates the intermediary bridge layer and anchors settlement directly to a stablecoin backed and redeemable by Circle’s regulated reserves.

Native USDC is redeemable for U.S. dollars on a one‑to‑one basis and is widely accepted in institutional markets for its transparency and regulatory compliance. This makes it more capital efficient and appealing to larger participants looking for predictable settlement rails.

Prediction Markets Growing Fast

Prediction markets like Polymarket allow users to trade contracts tied to real‑world outcomes — from crypto price movements to economic and political events — using stablecoins as collateral. As these markets grow, consistent and reliable settlement standards become increasingly important.

The partnership comes at a time when major crypto firms and prediction platforms are scaling up infrastructure, with some exchanges and financial services entering the space or expanding related offerings. This broader ecosystem growth underscores the need for strong, dollar‑based settlement mechanisms.

Industry Implications

Analysts view the move as a positive step toward institutionalizing blockchain‑based financial markets, reducing reliance on bridge technology and increasing reliance on regulated stablecoin infrastructure.

While challenges remain — including ongoing regulatory scrutiny of prediction markets and cross‑jurisdiction compliance — this deal suggests a broader trend of integrating regulated financial primitives into growing decentralized systems.