Circle and Polymarket announced a strategic partnership designed to strengthen settlement infrastructure for prediction markets. The move involves transitioning Polymarket’s collateral to native USDC, enhancing transparency, efficiency, and reliability for on-chain event trading.
Polymarket to Transition to Native USDC With Circle Support
Circle Internet Group, the issuer of the USD Coin (USDC) stablecoin, has announced a strategic partnership with Polymarket, the world’s largest prediction market platform, to introduce native USDC settlement across Polymarket’s on-chain prediction markets.
The collaboration, revealed on February 5, 2026, aims to improve reliability, capital efficiency, and institutional appeal for dollar-denominated trades on Polymarket by transitioning from bridged stablecoins to Circle’s regulated USDC.
Currently, Polymarket uses Bridged USDC (USDC.e) on the Polygon network as collateral for its markets. Under the new agreement, Polymarket will migrate to native USDC issued directly by Circle’s regulated entities, which are redeemable 1:1 for U.S. dollars. This upgrade is intended to eliminate the added complexity and risk associated with bridged tokens while offering a settlement standard aligned with institutional financial practices.
“Polymarket has been at the forefront of innovation in marrying the speed of information with the speed of markets,” said Circle CEO Jeremy Allaire, emphasizing that integrating USDC will provide a more efficient and dependable experience for traders. Polymarket founder and CEO Shayne Coplan added that the partnership enhances “market integrity and reliability” as user participation increases.
How The Collaboration Elevates Polymarket
Prediction markets allow users to trade on the likelihood of future real-world events, from political outcomes to economic indicators and pop culture trends. Being one of the most visible players in this category, Polymarket has attracted significant trading volumes and community engagement. Partnering with a regulated stablecoin issuer like Circle signals the space’s maturation, as robust settlement layers are crucial for scaling and institutional involvement.
The move also effectively standardizes dollar-denominated settlement on a platform that processes high-velocity trades in USDC trades, reducing reliance on fragmented stablecoin infrastructure. By eliminating bridged tokens that rely on intermediary bridges and sit on sidechains, Polymarket would reduce friction and counterparty risk for traders.
Institutional Momentum and Stablecoin Adoption Via Circle
Circle’s collaboration with Polymarket comes amid broader institutional interest in stablecoins as foundational infrastructure for on-chain finance. In late January, Mizuho Securities upgraded Circle’s stock outlook, lifting it to “neutral” and raising its price target. The firm cited Polymarket’s expanding use of USDC as a key growth driver.
Analysts further highlight that Polymarket’s rising trading volumes and diverse user base could directly fuel USDC adoption and market cap growth over the next several years.
This reflects not only the growing stature of Polymarket but also a bigger picture in which stablecoin utility extends well beyond typical DeFi lending and trading. Prediction markets draw both crypto-native and mainstream users into digital asset activity, where every trade settled in USDC reinforces demand for a regulated and transparent settlement layer that mirrors traditional financial rails.
Looking Ahead
Polymarket plans to complete the transition to native USDC over the coming months. The migration will be rolled out in a way that minimizes disruption to existing market activity while phasing out reliance on bridged USDC across supported networks.
For Circle, the collaboration further cements its role as a central infrastructure provider for stablecoin-centric financial markets. As native USDC becomes the go-to settlement currency for high-velocity on-chain platforms, its adoption could extend significantly beyond traditional DeFi use cases, potentially expanding both utility and market cap for the stablecoin.
Temitope Olajide
The CoinRemark Team
