Polymarket Unveils Exchange Overhaul, Native Stablecoin As US Expansion Looms

Authored by Micah Zimmerman via Bitcoin Magazine,

Bitcoin and crypto focused prediction market platform Polymarket is preparing its most significant infrastructure upgrade to date, rolling out a rebuilt trading system alongside a new native stablecoin designed to replace bridged collateral and streamline on-chain activity.

The overhaul, described by the company as a “full exchange upgrade,” is expected to go live over the next several weeks and includes new smart contracts, an updated central limit order book (CLOB), and a proprietary collateral token called Polymarket USD.

The token will be backed 1:1 by USDC and will replace USDC.e, a bridged version of the stablecoin currently used across the platform.

Last month, Intercontinental Exchange, the parent company of the New York Stock Exchange, made a $600 million direct cash investment in prediction market platform Polymarket as part of a broader equity fundraising round, the company announced.

The shift away from bridged assets reflects a broader effort to reduce reliance on cross-chain infrastructure, which can introduce additional risks and inefficiencies.

By moving to a natively controlled collateral token, Polymarket aims to tighten control over settlement, improve liquidity consistency, and simplify the trading experience for users.

At the core of the upgrade is a redesigned matching engine and an improved order book architecture.

The new system is intended to deliver faster execution, tighter spreads, and lower operational overhead. According to developer materials, the updated exchange stack reduces the complexity of order structures while introducing support for advanced features such as EIP-1271 signatures, enabling smart contract wallets to interact more seamlessly with the platform.

Polymarket said most users will experience a smooth transition, with the interface automatically handling the conversion of existing assets into Polymarket USD via a one-time approval. However, more advanced traders and developers will need to manually wrap their holdings using a dedicated collateral onramp contract and update integrations to align with the new system.

As part of the migration, all existing order books will be cleared during a scheduled maintenance window, with the company promising advance notice ahead of the transition. The reset is intended to ensure consistency across the upgraded infrastructure and avoid discrepancies between legacy and new systems.

Prediction markets like Polymarket are booming 

The timing of the overhaul comes amid rapid growth for Polymarket, which has seen trading volumes surge in recent months. The platform reportedly surpassed $10 billion in monthly volume in March, underscoring increasing demand for event-based trading markets across crypto and traditional finance audiences.

Beyond performance improvements, the upgrade signals a strategic shift toward greater vertical integration. Polymarket has historically relied on external systems, including optimistic oracle mechanisms, to resolve market outcomes. However, the company has hinted at future plans for a native token, potentially called POLY, which could play a role in governance and dispute resolution.

If implemented, such a token could allow Polymarket to internalize key functions like market validation and outcome verification, reducing dependence on third-party protocols and giving the platform more direct control over what it defines as “truth” within its markets.

The infrastructure revamp also aligns with Polymarket’s renewed push into the U.S. market. After previously halting domestic operations, the company has since registered with the Commodity Futures Trading Commission and is positioning itself to operate within an increasingly defined regulatory framework.

With its latest upgrade, the company is attempting to evolve from a fast-growing crypto application into a fully-fledged exchange platform, combining improved execution infrastructure with tighter control over collateral, governance, and market integrity.