Circle and Polymarket have joined forces to shift the prediction market platform towards native USDC for its settlement infrastructure.
On February 5, 2026, Circle announced this partnership. Currently, Polymarket uses Bridged USDC (USDC.e) on the Polygon blockchain as collateral for trading activities. The migration to native USDC is expected shortly.
Native USDC, directly issued by Circle’s regulated affiliates, maintains a 1:1 ratio with US dollars and differs from bridged versions, which are representations of USDC transferred through third-party bridge protocols across blockchain networks.
Platform for prediction markets
Polymarket functions as a blockchain-based platform allowing users to trade on the outcomes of real-world events. The platform handles trades with cryptocurrency collateral, primarily using USDC. Users deposit stablecoin collateral to place bets on binary or scalar outcomes across diverse global events.
Transitioning to native USDC addresses technical and regulatory challenges associated with bridged token structures. Bridged tokens rely on third-party smart contract infrastructure, introducing additional dependencies that are avoided with directly issued stablecoins.
Circle’s stablecoin operations
Circle operates under money transmitter licenses in the US and holds electronic money institution authorizations in select international regions. The company issues both USDC and EURC stablecoins, maintaining reserves primarily in cash and short-term US Treasury securities.
Decentralized finance (DeFi) landscape
Prediction markets leveraging blockchain for settlement blend traits of derivatives and information aggregation platforms. Users make financial bets on event outcomes, with market prices reflecting collective probability assessments.
The move from bridged to native assets aligns with broader advancements in blockchain interoperability. Bridge protocols facilitate token transfers between different blockchain networks but have faced security issues, including major incidents that resulted in substantial financial losses between 2021 and 2024.
Circle’s collaboration with Polymarket follows their partnership with LianLian Global since late December 2025. Together, they explored the use of stablecoins for cross-border payment infrastructure in commerce.
