Circle partners with Polymarket to bring native USDC settlement

Circle, Inc. announced a partnership with Polymarket, one of the leading prediction platforms. Circle will support reliable dollar-denominated settlement for Polymarket users. 

Circle will offer more direct infrastructure to Polymarket users, offering direct dollar-denominated settlement. Until now, Polymarket has used USDC informally as the most convenient stablecoin. 

The platform required users to bridge USDC into USDC.e on Polygon, to serve as collateral for trading activity and for payouts. 

‘Circle has built some of the most critical infrastructure in crypto, and partnering with them is an important step in strengthening prediction markets,’ said Shayne Coplan, Founder and CEO of Polymarket.

Circle will bring native USDC to Polymarket

As part of the new partnership, Polymarket will transition to native USDC in the coming months. Native USDC does not need to be bridged and can be redeemed for US dollars. 

‘The internet financial system driven by Circle platforms has been built to enable money and capital to work at the speed of the internet, with delightful consumer experiences,’ said Jeremy Allaire, Co-Founder, Chairman, and CEO at Circle.  

‘Polymarket has been at the forefront of innovation in marrying the speed of information with the speed of markets, and with the partnership we are building, we bring the utility and speed of USDC to provide the best possible experience for Polymarket users.’

Until now, Polymarket has been one of the main sources for USDC activity on Polygon, while keeping the relatively old chain active. Circle has moved in to solidify its position as key market infrastructure. The move is part of Polymarket’s quest for expansion as a fully regulated platform. 

The partnership formalizes stablecoin payments across digital asset ecosystems, where previously liquidity and tokens were fragmented. Circle will add more settlement efficiency for prediction market traders.

Polymarket reaches peak transactions

Polymarket activity reached a peak based on daily transactions. Over 2.19M transfers daily happened in the past week, with around 18 transactions per active wallet. Open interest expanded to its higher range, reaching over $319M.

USDC posted peak volumes in January, reaching over $26.8B for the whole month. The shift for USDC activity comes from a new wave of users on Polymarket. 

The platform is ahead of Kalshi on all predictions, excluding sports, as current events and news are its busiest category. Most users trade multiple markets, with around 5 markets per user. 

Around 29% of all bets are small, for $10 to $50. Only 101 bets were made with a value over $100,000. The recent shift in betting size happened while Polymarket onboarded a larger number of new pairs. The previous peak of activity at the end of 2024 was mostly driven by whales and prominent traders. 

Polymarket activity is also shifting, with categories easily replaced. Crypto predictions have slowed down, as interest shifted to stocks and metals. Opinion and current news remain a staple among prediction pairs.

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