Polymarket said it expects 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 post on X.
The upgrade, described by the company as a “full 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 bridge version of Circle’s USDC stablecoin that originates from Ethereum (ETH) and is packaged for use on other chains.
USDC.e acts as a stand-in for native USDC, but relies on bridge infrastructure, which can introduce increased risk and friction. By moving to its own token with collateral, one-to-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 on the way. In October, Polymarket’s Chief Marketing Officer confirmed plans for a POLY token, but did not provide a timeline or details on its functionality.
That token has not yet been formally revealed. Still, its potential role has drawn attention.
Polymarket has long relied on UMA’s “optimistic oracle” to solve market outcomes. In that system, users propose outcomes and UMA token holders vote to settle disputes. The design rewards consensus, not accuracy, which critics say could leave results open to influence by large token holders.
Recent controversies, including disputes linked to geopolitically themed markets, have exposed these limits. If POLY is used to internalize resolution, it may mark a shift toward internal management of truth.
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A hypothetical model would separate trade from governance. Users would continue to place bets in stablecoins like Polymarket USD, while POLY (if launched) would handle dispute resolution and market curation. This division could allow the platform to price honesty independently of trading results.
Polymarket’s push comes as it rebuilds its presence in the US. The platform closed domestic operations in 2022, but was registered with the Commodity Futures Trading Commission in July 2025. Since then, it has reported strong growth and a valuation above $20 billion.
The upcoming token launch and infrastructure changes suggest the company is tightening its grip on both trading and truth — two pillars that define prediction markets.
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