Polymarket, a highly valued prediction market platform worth over USD 20 billion, has announced comprehensive upgrades to its exchange. These updates include the deployment of new smart contracts, an enhanced order-matching engine, and the introduction of Polymarket USD as a new settlement token.
The rollout is anticipated to occur in the coming weeks; however, no specific date has been set yet.
In contrast to USDC.e, which is a bridged version of Circle’s USDC stablecoin operated by wrapping USDC from the Ethereum network for use on other chains, Polymarket USD will be directly backed 1:1 by USDC. This change offers Polymarket direct control over trade settlement and reduces reliance on third-party bridging systems.
EIP-1271 support and governance token development
The upgrade includes support for EIP-1271, an Ethereum standard that enables smart contract-based wallets, including multisig wallets and automated trading bots, to sign transactions on the platform. This expansion enhances compatibility beyond traditional crypto wallets.
A governance token named POLY was confirmed by Polymarket’s chief marketing officer in October 2025, though no launch timeline or specific details have been disclosed. The token is expected to be involved in dispute resolution and potentially replace the current UMA-based system where token holders vote on market outcomes—a model critics argue can be influenced by large holders.
US market re-entry
Polymarket had previously ceased operations for US users in 2022 but has since registered with the Commodity Futures Trading Commission (CFTC) in July 2025, paving the way for a return to the US market. The platform intends to bring on board brokers and customers in the United States through regulated venues.
ICE, the parent company of the NYSE, completed a USD 600 million investment in Polymarket, marking a significant step forward. Additionally, in February 2026, Polymarket partnered with Circle to transition its settlement infrastructure to native USDC, further solidifying its position.
