Circle Partners With Polymarket to Power USDC Settlement

Circle is expanding the reach of its stablecoin infrastructure through a new partnership with Polymarket, marking a major step toward standardized and regulated dollar settlement in onchain prediction markets.

Key Takeaways

• Polymarket will move from bridged USDC to native USDC for all platform settlement.
• Native USDC is issued by Circle’s regulated affiliates and redeemable one to one for US dollars.
• The shift is designed to strengthen market integrity, transparency, and reliability as usage grows.

What Happened?

Circle announced a partnership with Polymarket that will see the prediction marketplace adopt native USDC as its primary settlement asset. The change will replace the bridged version of USDC currently used on Polygon, with the transition expected to take place over the coming months.

Moving From Bridged Tokens to Native USDC

At present, Polymarket relies on Bridged USDC, also known as USDC.e, as collateral for all trading activity. Under the new agreement, the platform will instead use native USDC issued directly by Circle’s regulated affiliates. Native USDC is fully backed by dollar denominated reserves and offers direct redemption for U.S. dollars.

This transition reduces dependence on cross chain bridge infrastructure, which can introduce additional layers of custody and operational complexity. By using native issuance, Polymarket aligns its settlement framework more closely with the original stablecoin issuer, rather than relying on a bridged representation.

The move reflects a broader shift in crypto markets where platforms are becoming more selective about the structure, compliance posture, and redemption guarantees of the stablecoins they support.

Why Stablecoins Are Critical for Prediction Markets?

Prediction markets depend on fast, reliable, and predictable settlement. Traders must trust that their collateral maintains a stable value and can be redeemed without friction. For this reason, stablecoins have become the backbone of onchain prediction platforms.

By adopting native USDC, Polymarket anchors its collateral system to a regulated dollar instrument rather than a bridged asset. This simplifies redemption pathways and helps create a consistent dollar denominated trading environment across the platform.

Circle has repeatedly positioned its infrastructure as a foundation for internet speed money movement. Integrating that infrastructure into a prediction market highlights how specialized onchain venues are increasingly standardizing around institutional grade settlement assets.

Leadership Views on the Partnership

Jeremy Allaire, Co Founder, Chairman, and CEO of Circle, said the partnership brings the utility and speed of USDC to a platform that combines real time information with market pricing. He emphasized Polymarket’s role in innovating at the intersection of data, trading, and onchain finance.

Polymarket Founder and CEO Shayne Coplan said Circle has built some of the most critical infrastructure in crypto. He added that using USDC supports a consistent dollar denominated settlement standard that enhances market integrity and reliability as participation continues to grow.

Polymarket also noted that it works alongside established market infrastructure players as it builds toward a more transparent and scalable prediction market model.

Stablecoin Market Context

USDC is currently the second largest stablecoin by market capitalization, with a market value of approximately $70.7 billion. It remains behind Tether, whose USDT stablecoin holds a market cap of about $185.4 billion. Despite the difference in size, USDC is often viewed as a compliance focused alternative, especially by platforms seeking closer alignment with regulated financial standards.

As prediction markets grow and attract broader participation, settlement architecture is becoming a competitive differentiator, not just a technical detail.

CoinLaw’s Takeaway

In my experience covering stablecoins and market infrastructure, this partnership stands out as a sign that prediction markets are maturing. I find it encouraging that Polymarket is prioritizing trust and transparency over short term convenience. Choosing native USDC sends a clear message that settlement quality matters. As more users and institutions explore onchain markets, decisions like this will likely shape which platforms earn long term credibility.

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