Polymarket is weighing the possibility of launching its stablecoin

TL;DR

• Crypto prediction market provider Polymarket is weighing the possibility of launching its own stablecoin.
• The company recently attained a billion-dollar valuation.

Polymarket Could Launch its Own Stablecoin

Polymarket, a leading crypto-powered prediction market, is considering launching its own stablecoin. This latest development comes after the company recently attained a billion-dollar valuation.

A source familiar with the matter said Polymarket is weighing the options of introducing its own customized stablecoin or accepting a revenue-sharing deal with Circle based on the amount of USDC held on the platform.

The source added that Polymarket is seeking to launch its own stablecoin to enable it to own the yield-generating reserves that back the large amount of Circle’s USDC dollar-pegged token used to make bets on its betting platform. However, no decision has been made yet on the stablecoin launch

Stablecoins are gaining traction, especially in the United States, after the Senate passed the GENIUS Act last week. An increasing number of crypto firms are launching their stablecoins, with Ripple launching its RLUSD stablecoin a few months ago. However, the new entrants, including Ripple and PayPal, are yet to challenge the dominance of Tether and Circle, the two leading stablecoin issuers in the crypto market

While speaking to CoinDesk, the source stated that,

"Polymarket is locking a lot of stablecoin value in their betting pools, and so they want some kind of mechanism to get the yield. In the case of Polymarket, it’s a closed ecosystem, and all they really need to do is to be able to exchange USDC or USDT into whatever their custom stablecoin is. They don't have to worry about the last mile on ramp and off ramp. That's a very simple thing to build, and easy to secure and control.”

Polymarket is looking to re-enter the U.S. market thanks to the acquisition of U.S.-based QCEX.