Circle has formed a partnership with Polymarket to transition the prediction market platform to native USDC for settlement infrastructure.
The US-based digital currency issuer announced the collaboration on 5 February 2026. Polymarket currently uses Bridged USDC (USDC.e) on the Polygon blockchain as collateral for trading activity. The platform will migrate to native USDC in the coming months.
Native USDC is issued directly by Circle's regulated affiliates and maintains 1:1 redeemability with US dollars. The stablecoin differs from bridged versions, which are representations of USDC transferred across blockchain networks through third-party bridge protocols.
Settlement infrastructure for prediction markets
Polymarket operates as a blockchain-based prediction market where users trade on outcomes of real-world events. The platform processes trades using cryptocurrency collateral, with USDC serving as the primary settlement asset. Users deposit stablecoin collateral to take positions on binary or scalar outcomes across political, economic, and cultural events.
The transition to native USDC addresses technical and regulatory considerations associated with bridged token architectures. Bridged tokens depend on smart contract infrastructure maintained by third parties, introducing additional technical dependencies compared to directly issued stablecoins.
Circle operates under money transmitter licences in the US and holds electronic money institution authorisations in certain international jurisdictions. The company issues USDC and EURC stablecoins, with reserves held in cash and short-duration US Treasury securities.
Stablecoin infrastructure in DeFi
Prediction markets using blockchain settlement combine characteristics of derivatives markets and information aggregation platforms. Users express views on event outcomes through financial positions, with market prices reflecting aggregated probability assessments.
The transition from bridged to native assets reflects broader technical developments in blockchain interoperability. Bridge protocols enable token transfers across different blockchain networks but have experienced security incidents, including exploits resulting in hundreds of millions of dollars in losses across various bridge implementations between 2021 and 2024.
Circle's partnership with Polymarket follows the company's collaboration with LianLian Global from late December 2025, when the two joined forces to explore stablecoin-powered payment infrastructure for cross-border commerce.
