TL;DR
- Polymarket will replace the bridged USDC.e token on Polygon with native USDC issued directly by Circle to improve efficiency and reliability.
- The migration will occur in the coming months and will affect trading activity, order placement, and settlement across the platform.
- The partnership strengthens the role of stablecoins as core infrastructure for onchain prediction markets.
Polymarket, the largest fully onchain prediction market, confirmed a transition to native USDC through a collaboration with Circle. The update will modify the main payment infrastructure that supports activity on the marketplace and aims to deliver a cleaner connection between blockchain liquidity and dollar settlement.
The platform currently runs on Polygon and uses a bridged asset called USDC.e as its primary collateral. All deposits from Ethereum, Solana, Arbitrum, and Base are automatically converted into that token to facilitate trades and payouts. Under the new arrangement, Circle will introduce a direct version of USDC on Polygon, removing the need for the bridged layer.
Circle indicated that the rollout would take place over the coming months and would be coordinated to avoid disruptions for open markets. Jeremy Allaire said the integration would bring the speed of digital dollars closer to the speed of information that drives prediction trading.
USDC is the second largest stablecoin and is issued natively on about 30 networks. Circle has outlined plans to expand interoperability and deepen support for high activity chains during 2026. Polymarket has become one of the most active applications after processing billions of dollars in volume during 2025.
Polymarket Migration Strengthens USDC Infrastructure
Moving from a bridged token to native issuance changes the structure of risk and capital efficiency. Direct USDC is redeemable one to one for dollars through Circle affiliates, while bridged versions depend on external contracts and custodial models. Professional traders have argued that native assets simplify accounting and reduce friction for larger strategies.
Shayne Coplan said that adopting USDC would support a consistent dollar settlement standard and improve market integrity as participation expands. The platform has attracted attention from data providers and financial firms that use prediction prices to measure real world expectations.
Broader Effects On Onchain Markets
The collaboration arrives as many applications explore dedicated infrastructure and potential tokens of their own. Polymarket representatives have not confirmed plans for a POLY asset or an application specific Layer 2, yet the upgrade suggests preparation for greater scale and institutional flows.
Stablecoins continue to act as the main bridge between traditional finance and crypto markets. Clearer rails can draw users who avoided bridged assets and complex conversions in the past.
