Polymarket, the prediction market platform valued at over USD 20 billion, has announced a full exchange upgrade covering new smart contracts, a rebuilt order-matching engine, and the introduction of a new settlement token called Polymarket USD.
According to Polymarket, the rollout is expected over the coming weeks, with no specific date confirmed.
Polymarket USD will replace USDC.e, a bridged version of Circle's USDC stablecoin that operates by wrapping USDC from the Ethereum network for use on other chains. That process introduces risk through dependence on bridge infrastructure. Polymarket USD will be backed 1:1 by USDC, giving the platform direct control over trade settlement and reducing reliance on third-party bridging systems. For most users, the transition will happen automatically, requiring only a one-time approval through the platform interface.
EIP-1271 support and governance token development
The upgrade also introduces support for EIP-1271, an Ethereum standard that allows smart contract-based wallets, including multisig wallets and automated trading bots, to sign transactions on the platform, expanding compatibility beyond standard crypto wallets.
Furthermore, a governance token, POLY, was confirmed as planned by Polymarket's chief marketing officer in October 2025, though no launch timeline or specific details have been announced. The token is expected to play a role in dispute resolution, potentially replacing the current UMA-based system in which token holders vote to settle market outcomes, a model that critics have noted can be influenced by large holders.
US market re-entry
Polymarket shut down for US users in 2022 and registered with the Commodity Futures Trading Commission in July 2025, clearing the way to re-enter the US market. The platform has indicated plans to onboard brokers and customers in the US and facilitate trading through regulated venues. ICE, the NYSE's parent company, completed a USD 600 million investment in Polymarket. Additionally, back in February 2026, the company teamed up with Circle to transition to native USDC for settlement infrastructure.
