Polymarket said it hopes to launch a new 1:1 collateralized token backed by USDC in the coming weeks as part of a broader overhaul of its trading platform, according to a post on X.
The update, described by the company as a “complete exchange update,” includes a rebuilt trading engine, updated smart contracts, and a new collateral token called Polymarket USD. The token will replace USDC.e, a bridge version of Circle’s USDC stablecoin that originates on Ethereum (ETH) and is packaged for use on other chains.
USDC.e acts as a substitute for native USDC, but relies on bridging infrastructure, which can introduce additional risks and frictions. By moving to its own collateralized token, one-to-one with USDC, Polymarket appears to be aiming for tighter control over settlement and liquidity.
The update follows earlier signs that a broader token strategy is in the works. In October, Polymarket’s chief marketing officer confirmed plans for a POLY token, but did not provide a timeline or details about its role.
That token has not yet been formally revealed. Still, its potential role has drawn attention.
Polymarket has long relied on UMA’s “optimistic oracle” to resolve market outcomes. In that system, users propose results and UMA token holders vote to resolve disputes. The design rewards consensus, not precision, which critics say can leave results open to influence from large token holders.
Recent controversies, including disputes linked to geopolitically themed markets, have exposed those limits. If POLY is used to internalize resolution, it could mark a shift toward internal truth governance.
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A hypothetical model would separate trade from governance. Users would continue to place bets on stablecoins like Polymarket USD, while POLY (if launched) would handle dispute resolution and market curation. That split could allow the platform to price honesty regardless of trading results.
Polymarket’s push comes as it rebuilds its presence in the US. The platform closed its domestic operations in 2022, but registered with the Commodity Futures Trading Commission in July 2025. Since then, it has reported strong growth and a valuation of over $20 billion.
The upcoming token launch and infrastructure changes suggest the company is tightening control over both trading and truth, two pillars that define prediction markets.
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