In a strategic pivot for blockchain-based prediction markets, Circle Internet Group and Polymarket announced a collaboration today to upgrade settlement infrastructure on the world’s largest event-trading platform.
The move marks a notable step toward integrating stablecoins like USDC as core financial rails in information-driven markets and comes as institutional voices increasingly examine the credibility and growth of crypto-native markets.
Native USDC Settlement to Replace Bridged Tokens
Circle said Polymarket users will transition from bridged USDC tokens on the Polygon network to native USDC issued by its regulated affiliates in the coming months.
Native USDC is fully backed 1:1 by U.S. dollars and is designed to improve capital efficiency and settlement reliability for rapid, on-chain markets, according to the press release.
Jeremy Allaire, Circle’s co-founder and CEO, framed the partnership as part of a broader vision to enable money and capital “at the speed of the internet.”
Shayne Coplan, Polymarket’s founder and CEO, described the relationship as strengthening “market integrity and reliability,” highlighting the importance of a consistent dollar-linked unit of account as participation and liquidity grow.
Prediction Markets Emerge as Infrastructure Drivers
Industry analysts see the partnership as more than a technical upgrade, as it signals the maturation of prediction markets from niche betting venues to institutional-grade financial infrastructure.
In late January, Mizuho Securities upgraded Circle’s share rating to “neutral”, citing Polymarket’s growing use of USDC settlement as a catalyst for broader adoption and a potential expansion of USDC’s market capitalization. The current USDC market cap stands at a little above $70 billion, with roughly $30 billion daily volume.
The firm noted that Polymarket could be annualizing around $50 billion in trading volumes in 2026, with activity directly translating into demand for USDC.
Meanwhile, U.S. regulators are also watching more closely. The Commodity Futures Trading Commission has indicated it wants clearer rules governing prediction markets, a shift that could help define how dollar-denominated settlement systems operate within existing financial frameworks.
Against that backdrop, Polymarket’s move toward native USDC highlights a broader shift in crypto markets. Stablecoins are no longer serving only as payment tools, but as settlement infrastructure for platforms that price real-world events in real time.
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