Polymarket replaces bridged USDC.e with Polymarket USD

Polymarket announced Monday it will replace the bridged stablecoin USDC.e with a new token called Polymarket USD and roll out version 2 exchange contracts over the next few weeks. The platform said most user balances will convert automatically through the interface and will require a one-time approval; no exact rollout date was provided.

Version 2 exchange contracts change how orders are structured and matched on the platform. The code is intended to reduce complexity in trade flows and make it easier for developers, trading bots and other tools to connect to the exchange.

The upgraded contracts include support for EIP-1271, an Ethereum standard that allows smart contract wallets to sign transactions. That support covers multisignature wallets and automated trading systems, expanding the types of wallets that can execute trades on the platform.

Polymarket USD will be backed 1:1 by USDC and will replace the bridged USDC.e token previously used for collateral. The company described the new token as a way to exercise more direct control over settlement and to reduce dependence on bridged assets.

Regulatory context informed the changes. In November Polymarket received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the United States. Following that approval, the firm plans to onboard brokers and customers directly and to route trading through regulated U.S. venues.

Polymarket adjusted trading fees at the end of March; fee revenue has increased since the fee change. Prediction markets allow users to trade on outcomes tied to politics, markets and policy. Platforms that move assets across blockchains face scrutiny over settlement transparency and custody, which Polymarket said the technical and collateral changes aim to address.