Polymarket Unveils Collateral Token to Replace Bridged USDC

Polymarket on Monday unveiled Polymarket USD, a proprietary collateral token backed 1:1 by $USDC that will replace bridged $USDC.e as the settlement asset across the on-chain prediction market.

The new token is the centerpiece of what Polymarket called its most significant infrastructure change to date — a full exchange upgrade spanning new smart contracts, a rebuilt central limit order book, and updated developer SDKs, all rolling out over the next two to three weeks.

For most users, the frontend will handle wrapping automatically with a one-time approval prompt, Polymarket said. Power users and API traders will need to wrap their $USDC or $USDC.e into the new token via a Collateral Onramp contract.

Exchange Upgrade

Alongside the collateral migration, Polymarket is deploying CTF Exchange V2, an upgraded version of its core smart contract. The new contracts optimize trade matching, add support for EIP-1271 signatures, introduce builder codes for on-chain order attribution, and streamline fee collection and distribution, according to a developer breakdown shared alongside the announcement.

All existing order books will be cleared during a short maintenance window, with the exact date and time to be announced at least one week in advance.

Scaling for Growth

The overhaul arrives as Polymarket processes record volumes. The platform crossed $10 billion in monthly volume in March, its highest ever, according to Artemis. Weekly notional volume has consistently exceeded $1 billion through the first quarter.

The infrastructure push follows a series of milestones, including NYSE parent ICE's $600 million follow-on investment and the launch of traditional asset markets via Pyth Network.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.