According to those familiar with the plan, Polymarket, a cryptocurrency-driven forecast market that has recently earned a $1 billion valuation, is deciding whether to implement its own customized Stablecoin or accept revenue sharing transactions with Circle based on the amount of USDC held on the platform.
The motivation for creating Polymarket's own Stablecoin is simply to own reserves that produce yields that support Circle's massive USDC dollar page tokens that were used to place bets on popular betting platforms.
A representative from Polymarket said no decision has been made on the Stablecoin question.
The Stubcoin Act, passed in the US last week, issues a more attractive business proposal for both encrypted companies and more traditional financial players who may look to the success of the giant's tethers and circles issued by Stablecoin.
That said, launching Stablecoin is a complex lift for many companies, and it is known that USDC issuer circles are cutting revenue sharing transactions with exchanges, payment companies and other fintechs to stay competitive in the rapidly evolving space.
For Polymarket, issuing its own Stablecoin is, according to sources, a much easier lift from a regulatory standpoint.
“Polymarket locks many Stablecoin values in the betting pool, so they want to get some kind of mechanism yield,” the person said. “In the case of Polymarket, it's a closed ecosystem and all they really need to do is make sure your USDC or USDT can be exchanged for anything by custom stub coins.
Circle's spokesman did not immediately return a request for comment.
Polymarket's USDC volume fluctuates with betting activities on the platform, but around $8 billion in bets were placed during the US election cycle last year, and in May the website attracted around 15.9 million visits, according to Simorweb.
The company aims to formally re-enter the US with its US-based acquisition of QCEX.
