Polymarket, a cryptocurrency-based prediction platform, is considering the option to issue its own Stablecoin.
According to sources familiar with the issue, the company plans to generate the spare revenue itself by issuing the new Stablecoin or enter into a revenue sharing agreement with Circle for the amount of USDC held on the platform.
Polymarket, which has recently reached a $1 billion valuation, wants to control revenue from USDC's reserves, the Dollar-Pegged Token of Circle, which is heavily used in the pool of bets. A representative from Polymarket said no final decision has been made on Stablecoin yet.
The passage of the Stablecoin Act in the US last week has led to increased interest in the sector, making Stablecoin issuance a more attractive business model for both crypto companies and traditional financial players. These developments are inspired by the success of Stablecoin giants like Tethers and Circles to encourage new companies to enter the market.
However, launching Stablecoin is a complex process from a technical and regulatory perspective, and Circle has concluded revenue sharing agreements with exchanges, payment companies and FinTech companies to maintain its advantages in this competitive environment.
For Polymet, the regulatory aspect is relatively simple. According to the source, “Polymet is looking for ways to lock up a ton of stupid and stupid things in its prediction pools and generate returns from these reserves. With their ecosystems closed, they can only make their own stylized USDC or USDT. This is a technically simple, safe and controllable structure.”
The amount of USDC held on the platform depends on the amount of BET, but an estimate of approximately $8 billion was created during the US election cycle last year. In May, Polymarket received 15.9 million visits, according to data from SimaryWeb.
*This is not investment advice.
