Polymarket Overhauls Its Exchange and Launches New Stablecoin Token

TLDR

• Polymarket is rolling out a “full exchange upgrade” in the coming weeks, including new smart contracts and a rebuilt trading engine.
• A new collateral token called Polymarket USD will replace USDC.e, the bridged stablecoin currently used on the platform.
• Polymarket USD is backed 1:1 by USDC, giving the platform more control over settlement and reducing bridge-related risk.
• A separate POLY governance token has been confirmed but not yet launched, and could play a role in dispute resolution.
• Polymarket registered with the CFTC in July 2025 and is now rebuilding its U.S. presence after exiting in 2022.

Polymarket, the prediction market platform valued at over $20 billion, is upgrading its core trading infrastructure. The changes include new smart contracts, a rebuilt order-matching engine, and a new stablecoin token designed to replace a bridged version of USDC.

The platform announced what it calls a “full exchange upgrade” on X. The rollout is expected over the next few weeks, though no exact date has been given.

At the center of the upgrade is a new token called Polymarket USD. It will replace USDC.e, which is a bridged version of Circle’s USDC stablecoin. USDC.e works by wrapping USDC from the Ethereum network for use on other chains, but this process adds risk through its reliance on bridge infrastructure.

Polymarket USD will be backed 1:1 by USDC. The switch gives Polymarket direct control over how trades are settled and reduces its dependence on third-party bridge systems.

For most users, the transition will happen automatically through the platform’s interface. A one-time approval is all that will be needed.

The upgrade also introduces support for EIP-1271, an Ethereum standard. This allows smart contract-based wallets, like multisig wallets and automated trading bots, to sign transactions on the platform. That expands compatibility beyond standard crypto wallets.

A Governance Token Still in the Works

In October 2025, Polymarket’s chief marketing officer confirmed that a POLY token was planned. No timeline or details about its use were given at the time, and it has not been formally launched yet.

The token is expected to play a role in governance. Currently, Polymarket uses a system built by UMA, where token holders vote to settle market disputes. Critics have pointed out that this system rewards consensus rather than accuracy, which can leave results open to influence from large holders.

If POLY takes over that role, it could move dispute resolution in-house. One possible model would separate trading from governance — users place bets in Polymarket USD, while POLY handles how disputes are resolved and markets are managed.

Polymarket’s Return to the U.S. Market

Polymarket shut down for U.S. users in 2022. It registered with the Commodity Futures Trading Commission in July 2025, clearing the way for a return.

Following that approval, the platform said it plans to onboard brokers and customers in the U.S. directly and facilitate trading through regulated venues.

The platform’s fee revenue has been increasing in recent weeks after it expanded its trading fees, according to industry data.

Polymarket’s valuation now stands above $20 billion, and the NYSE’s parent company, ICE, completed a $600 million investment in the platform.

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