Polymarket, a leading onchain prediction market platform, is set to enhance its trading infrastructure by transitioning from the bridged USDC.e token to native USDC issued directly by Circle. This strategic move is aimed at increasing efficiency and reliability within the platform, which primarily operates on the Polygon network.
The migration will take place over the coming months and is expected to significantly impact trading activity, order placement, and settlement processes throughout the platform. Currently, Polymarket utilizes USDC.e as its main collateral, which automatically converts deposits from various networks, including Ethereum, Solana, Arbitrum, and Base, to facilitate trades and payouts.
The new arrangement will eliminate the reliance on the bridged token, allowing for a more direct and efficient connection between blockchain liquidity and dollar settlement. According to Jeremy Allaire from Circle, this integration will enhance the speed of digital dollar transactions, aligning it more closely with the rapid flow of information that informs prediction trading.
As the second-largest stablecoin, USDC is natively issued across approximately 30 different networks. Circle has announced plans for greater interoperability and increased support for high-activity chains by 2026. Polymarket, having processed billions in transaction volume in 2025, stands as a prominent application in the space.
This shift to a native USDC infrastructure represents a significant change in risk structure and capital efficiency. The direct USDC tokens are redeemable on a one-to-one basis for dollars through Circle affiliates, contrasting with bridged versions that depend on external custodial models. This transition is expected to simplify accounting processes and reduce friction for professional traders, thereby enhancing market integrity as the user base expands.
Experts like Shayne Coplan have noted that adopting native USDC will establish a consistent dollar settlement standard, attracting a broader range of participants, including data providers and financial institutions that leverage prediction market prices to gauge real-world expectations.
The timing of this partnership also coincides with an increasing number of applications seeking dedicated infrastructure and exploring their own tokens. While representatives from Polymarket have not confirmed any plans for a POLY asset or a specific Layer 2 solution, this migration indicates a preparation for scaling and accommodating institutional flows.
As stablecoins continue to serve as the primary link between traditional finance and the cryptocurrency markets, the clearer operational frameworks introduced by this migration may appeal to users who previously avoided bridged assets and complex conversion processes.
