Polymarket said it plans to roll out a new 1:1 USDC-backed collateral token in the coming weeks as part of a broader overhaul of its trading platform, according to a report on X.
The upgrade, described by the company as a “complete exchange upgrade,” includes a rebuilt trading engine, updated smart contracts, and a new collateral token called Polymarket USD. The token will replace USDC.e, a bridged version of Circle’s USDC stablecoin that originates from Ethereum (ETH) and is packaged for use on other chains.
USDC.e replaces native USDC, but relies on bridging infrastructure, which can introduce additional risks and friction. By moving to its own collateralized token, one-on-one with USDC, Polymarket appears to be aiming for tighter control over settlement and liquidity.
The update follows earlier signals that a broader token strategy is in the works. In October, Polymarket’s CMO confirmed plans to create a POLY token, but did not provide a timeline or details on its function.
This token has not yet been officially revealed. Still, his potential role has attracted attention.
Polymarket has long relied on the UMA “optimistic oracle” to solve market problems. In this system, users propose results and UMA token holders vote to resolve disputes. The design rewards consensus, not accuracy, which critics say can leave results open to influence by large token holders.
Recent controversies, including disputes over geopolitically themed markets, have highlighted these limitations. If POLY is used to internalize resolution, this could mark a shift toward internal governance of truth.
Read more: Polymarket withdraws controversial Iran bailout markets after intense backlash
A hypothetical model would separate trading from governance. Users would continue to stake on stablecoins like Polymarket USD, while POLY (if launched) would handle dispute resolution and market curation. This division could allow the platform to assess honesty independently of transaction results.
Polymarket’s push comes as it rebuilds its presence in the United States. The platform closed its domestic operations in 2022 but registered with the Commodity Futures Trading Commission in July 2025. Since then, it has seen strong growth and a valuation in excess of $20 billion.
The upcoming token launch and infrastructure changes suggest the company is strengthening its control over trading and truth, two pillars that define prediction markets.
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