Polymarket drops USDC.e for USDC-backed token in exchange overhaul
By Anonymous
Polymarket is upgrading its exchange infrastructure in the coming weeks, introducing new contracts and a USDC-backed token while phasing out a bridged stablecoin.
Prediction platform Polymarket is overhauling its exchange infrastructure in the coming weeks, introducing a new collateral token and upgraded trading system that give the platform greater control over settlement and risk as it moves toward closer alignment with US regulatory expectations.
In an announcement on Monday, Polymarket said it will deploy new exchange contracts — dubbed version 2 — designed to simplify how orders are structured and matched. The upgrade is intended to make trading more efficient and to make it easier for developers to connect apps and trading bots to the platform.
The new system will also support EIP-1271, an Ethereum standard that allows smart contract-based wallets, such as multisigs and automated trading systems, to sign transactions, expanding compatibility beyond traditional wallets.
A central component of the upgrade is the introduction of Polymarket USD, a new collateral token that will replace USDC.e, the bridged version of USDC (USDC) previously used on the platform. The new token is fully backed 1:1 by USDC, giving Polymarket more direct control over its settlement layer while reducing reliance on bridged assets.
For most users, the transition will be handled automatically through the platform’s interface, requiring only a one-time approval.
The upgrade is expected to roll out over the next few weeks, though the company has not provided a specific timeline.
Related: NYSE parent ICE completes new $600M investment in Polymarket
The move follows Polymarket’s broader efforts to curb manipulation and insider-trading risks, as it seeks to strengthen market integrity and align more closely with US regulatory standards.
In November, Polymarket received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the United States, clearing the way for its return after previously exiting the market.
Following that approval, Polymarket said it plans to onboard brokers and customers directly and facilitate trading through regulated US venues.
Interest in prediction markets has continued to grow, with users increasingly turning to these platforms to trade on real-world outcomes tied to politics, markets and policy. Industry data shows Polymarket’s fee revenue increasing in recent weeks after the platform expanded trading fees.
Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?
Source: CoinTelegraph
