Polymarket Revamps Trading Infrastructure With Native USD Token, Ditches Bridged USDC

Polymarket is making a significant push to strengthen its market infrastructure and regulatory standing. The prediction market platform is rolling out a major exchange upgrade over the coming weeks that centers on introducing a proprietary stablecoin while phasing out its previous collateral arrangement.

The Infrastructure Shift: What's Changing

The platform is deploying new exchange contracts—Version 2—designed to streamline order structure and matching mechanics. This isn't just a technical refresh; it's fundamentally about giving Polymarket tighter control over its settlement layer and reducing complexity for developers building trading bots and connected applications.

The upgrade introduces support for EIP-1271, an Ethereum standard enabling smart contract-based wallets (multisigs, automated systems) to execute transactions. This expands Polymarket's wallet compatibility beyond traditional setups, opening doors for sophisticated traders and institutional players.

The Critical Move: USDC.e Gets Replaced

Here's where things get interesting for the crypto analysis crowd. Polymarket is retiring USDC.e—the bridged version of USDC previously underpinning the platform—and replacing it with Polymarket USD, a new token fully backed 1:1 by native USDC.

This matters because direct backing gives Polymarket operational control over its settlement infrastructure without depending on third-party bridge protocols. Users will see an automatic transition through the platform interface with just a one-time approval needed. The company hasn't locked down a specific rollout timeline yet, only noting it'll happen "over the coming weeks."

Regulatory Alignment: Why This Matters Now

This overhaul tracks directly with Polymarket's regulatory progress. In November, the Commodity Futures Trading Commission granted Polymarket approval to operate an intermediated trading platform in the US after the platform had previously exited the American market. That green light cleared the path for direct broker and customer onboarding through regulated US venues.

The infrastructure upgrade is part of Polymarket's broader mandate to tackle market manipulation and insider-trading risks. By controlling its settlement layer directly, the platform gains better visibility and control over transaction flows—exactly what regulators want to see from crypto trading venues.

Market Momentum Building

Prediction markets are heating up. Users are increasingly gravitating toward platforms like Polymarket to trade outcomes tied to politics, markets, and policy. The portfolio of available contracts continues expanding, attracting both retail and sophisticated traders.