Circle has formed a partnership with Polymarket to transition the prediction market platform to native USDC for settlement infrastructure. The US-based digital currency issuer announced the collaboration on 5 February 2026. Polymarket currently uses Bridged USDC (USDC.e) on the Polygon blockchain as collateral for trading activity. The platform will migrate to native USDC in the coming months.
Native USDC is issued directly by Circle’s regulated affiliates and maintains 1:1 redeemability with US dollars. The stablecoin differs from bridged versions, which are representations of USDC transferred across blockchain networks through third-party bridge protocols. Polymarket operates as a blockchain-based prediction market where users trade on outcomes of real-world events. The platform processes trades using cryptocurrency collateral, with USDC serving as the primary settlement asset.
Users deposit stablecoin collateral to take positions on binary or scalar outcomes across political, economic, and cultural events. The transition to native USDC addresses technical and regulatory considerations associated with bridged token architectures. Bridged tokens depend on smart contract infrastructure maintained by third parties, introducing additional technical dependencies compared to directly issued stablecoins.
Circle operates under money transmitter licences in the US and holds electronic money institution authorisations in certain international jurisdictions. The company issues USDC and EURC stablecoins, with reserves held in cash and short-duration US Treasury securities.
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