The prediction platform Polymarket may soon release its own stablecoin to increase profits through more efficient use of reserves currently held in USDC. This move would allow the service to independently control its reserves and generate additional income that currently goes to the issuer of USDC — Circle.
This is reported by Finway
Polymarket Seeks New Revenue Streams
According to informed sources, Polymarket’s motivation lies in the desire to have direct profits from the reserves that back significant volumes of USDC circulating on the betting platform. Company representatives confirm that a final decision on launching its own stablecoin has not yet been made.
“Polymarket is holding substantial volumes of stablecoins in its betting pools and is looking for a mechanism to profit from this,” the source noted.
Polymarket operates within a closed ecosystem, allowing for quick exchanges between USDC or USDT and its own token. This approach simplifies the launch of a new stablecoin, as there is no need for complex solutions for depositing or withdrawing fiat funds, and it ensures control over the platform’s infrastructure.
Competition in the Stablecoin Market Intensifies
While Polymarket considers launching its own token, Circle is ramping up its efforts to lead the market by signing profit-sharing agreements with major exchanges, payment services, and fintech companies. However, Circle representatives have not provided any comments regarding a potential launch of a competing stablecoin on Polymarket.
The introduction of new legislation in the U.S., particularly the signing of the GENIUS Act by President Donald Trump, creates favorable conditions for the launch of stablecoins by both cryptocurrency companies and traditional financial institutions. Experts note that in the wake of the success of Tether and Circle, more companies are aspiring to create their own stablecoins, and Polymarket is no exception.
“The launch of a stablecoin is a new profitable model,” industry analysts stated.
It was previously reported that Polymarket plans to return to the U.S. market by acquiring the licensed platform QCEX. This became possible after the completion of investigations into the service’s activities in the U.S. and the resolution of legal issues.