Circle Internet Group is partnering with Polymarket, the world's largest prediction market platform, to enhance its on-chain dollar settlement infrastructure. This partnership will see Polymarket transition from its existing Polygon-based USDC.e to a regulated "native USDC."
This decision goes beyond a simple technological upgrade; it represents a strategic move to simultaneously strengthen payment reliability and regulatory compliance within prediction markets. With the global stablecoin regulatory framework rapidly being restructured, analysts predict that native issuance methods with regulatory-friendly structures are increasingly likely to become the standard.
Jeremy Allaire, CEO of Circle, emphasized the need for a transparent, 24/7 payment experience. He explained that the on-chain dollar, which operates without interruption, is the core of next-generation financial infrastructure. Shayne Coplan, CEO of Polymarket, also expressed his expectations for enhanced reliability and stability in dollar-based payments.
Until now, Polymarket has used USDC.e, issued via a bridge mechanism. Native USDC, on the other hand, is issued and redeemed directly on the blockchain, offering a more transparent framework for reserve management, auditing, and regulatory frameworks. This is significant because it establishes a favorable foundation for institutional capital inflow and expansion of global partnerships.
Prediction markets are platforms where "probabilities" for various issues, including political, economic, and macroeconomic events, are traded at a price. Since information reliability directly influences market value, the stability of payment methods is a key factor in determining the platform's competitiveness. This transition could serve as an opportunity to elevate prediction markets to a practical use case for on-chain finance.
The industry interprets this partnership as a signal that regulation-friendly stablecoins are expanding beyond DeFi and RWAs to encompass information-based markets. Especially with discussions on institutionalizing stablecoins progressing in the US and Europe, dollar-based on-chain payments are likely to become a central pillar of the global digital financial order.
Ultimately, this collaboration provides direction for what a "standard currency" will be in the on-chain economy. Circle and Polymarket are finding the answer in native USDC.
