TLDR

  • Polymarket is teaming up with Circle to transition from bridged USDC (USDC.e) on Polygon to Circle-issued native USDC in the upcoming months
  • Native USDC can be directly redeemed at a 1:1 ratio for US dollars and does away with reliance on cross-chain bridges, which are prone to security vulnerabilities
  • Polymarket recorded $7.66 billion in trading volume during January 2026 and processed over $22 billion in the first eleven months of 2025
  • The migration is intended to offer quicker, more dependable transactions and boost market integrity as the platform expands
  • Major crypto exchanges such as Gemini, Coinbase, and Crypto.com have recently rolled out their own prediction market platforms

Polymarket declared a partnership with Circle Internet Group on Thursday to shift its settlement infrastructure from bridged USDC to native USDC. The transition will occur in the coming months.

The prediction market platform currently utilizes bridged USDC, referred to as USDC.e, on the Polygon network as trading collateral. Native USDC originates directly from Circle’s regulated entities and can be redeemed at a 1:1 ratio for US dollars.

Bridged tokens need intermediary protocols to transfer assets between different blockchains. These cross-chain bridges lock assets on one network and create corresponding representations on another network.

Cross-chain bridges have become targets for security breaches in the crypto industry. Native stablecoins eliminate this intermediary step, creating a more direct settlement route.

Shayne Coplan, founder and CEO of Polymarket, stated that the change supports “a consistent, dollar-denominated settlement standard that enhances market integrity and reliability as participation on the platform continues to expand.” The platform enables users to trade contracts linked to real-world events using stablecoins as collateral.

Platform Growth Spurs Infrastructure Update

Polymarket recorded $7.66 billion in trading volume during January 2026. The platform processed over $22 billion in total trading volume across the first eleven months of 2025, marking a 57% increase from 2024.

In October 2025, Polymarket logged $3 billion in trading volume on Polygon with over 338,000 active traders. The platform currently ranks as the second-largest prediction market globally by volume.

USDC holds the position of the second-largest stablecoin in the crypto market. Tether’s USDt leads the category, whereas USDC maintains a market capitalization of approximately $70.77 billion according to Defillama data.

Prediction Market Competition Escalates

Currently, [platform name] functions as the largest prediction market platform with $9.55 billion in monthly volume. The platform recently forged a partnership with Coinbase, which likely boosted its trading activity.

Several major crypto exchanges entered the prediction market arena in recent months. Gemini launched Gemini Predictions in mid-December, providing event-based trading across all 50 US states upon obtaining regulatory approval.

Coinbase announced its own prediction market in collaboration with Kalshi one day after Gemini’s launch. Crypto.com followed on Tuesday with the debut of OG, a standalone prediction market platform operated by Crypto.com Derivatives North America exclusively for US users.

Traditional finance companies also ventured into the sector. Retail brokerage Robinhood and sports betting platform DraftKings both introduced prediction market offerings in 2025.

The prediction market category gained extensive attention during the 2024 US presidential election. However, some analysts have expressed concerns about potential insider trading on these platforms.

Regulatory Scrutiny Persists

State gaming regulators have questioned the legal status of prediction markets. Kalshi is facing legal scrutiny from authorities in Massachusetts, New York, and several other states regarding whether its event contracts qualify as gambling.

Portugal recently ordered a stop to political betting on prediction platforms. Regulators globally continue to examine how prediction markets operate and whether existing gambling laws apply to them.