From prediction markets to payments: Why Polymarket needs its own stablecoin

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Eugene Komchuk

07.04.2026

From prediction markets to payments: Why Polymarket needs its own stablecoin — The evolution of Polymarket

Polymarket is preparing for one of the biggest updates in its history — the prediction market platform is set to introduce its own stablecoin. At first glance, this looks like a routine platform upgrade, but in reality, it reflects a much broader shift. Stablecoins are becoming part of the global financial system, and major players like Visa and Mastercard are already paying close attention.

A move toward independence

Polymarket is planning a major overhaul of its internal infrastructure. The team has announced a new smart contract, an updated order book, and a faster matching engine designed to reduce the number of operations and lower gas costs. This is the most significant technical upgrade since the platform launched.

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The key development is the launch of Polymarket USD, the platform’s native stablecoin. It will be backed 1:1 by USDC and will become the primary settlement asset on the platform. At the same time, Polymarket is moving away from USDC.e on Polygon — a bridged version of USDC.

Notably, the new announcement makes no mention of the POLY token, which the team had previously discussed. This is especially interesting given that Polymarket had been seen as a potential IPO candidate in 2026 alongside other major crypto platforms. For now, instead of focusing on a token launch or public listing, the company is prioritizing its trading infrastructure and stablecoin.

The prediction market is getting crowded

Interest in prediction markets has surged over the past year. In August 2025, the combined monthly trading volume of Polymarket and Kalshi was below $2 billion. Just six months later, in February 2026, it exceeded $18 billion.

At the same time, competition is intensifying. Kalshi, which is regulated by the CFTC, has already overtaken Polymarket in trading volume and is estimated to have surpassed $1 billion in annual revenue. Its growth has been driven largely by sports-related contracts — for example, trading volume exceeded $1 billion on Super Bowl Sunday alone.

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Meanwhile, new players are entering the space. Products with prediction market elements have already been launched or announced by Coinbase, Crypto.com, and DraftKings, while traditional exchanges like Nasdaq and Cboe are also exploring binary contracts. In this environment, Polymarket is not just improving its product — it is accelerating to stay competitive in a rapidly evolving market.

Stablecoins are moving beyond crypto

So why is Polymarket launching its own stablecoin? This is not an isolated case, but part of a broader shift. More platforms are looking to control settlements within their own ecosystems, creating their own digital “dollars” instead of relying on external infrastructure.

The scale of this market is already hard to ignore. According to DeFiLlama, the total stablecoin market cap has surpassed $317 billion, with around 58% dominated by USDT. Since the beginning of 2025, the market has grown by approximately $100 billion.

Stablecoins are no longer just tools for crypto trading. As noted by the World Economic Forum, they are increasingly influencing cross-border payments, the international role of the dollar, the resilience of financial infrastructure, and even the economic autonomy of states.

When Visa and Mastercard step in

Stablecoins are attracting growing attention from major global payment companies, and that interest is already translating into real business decisions. In March 2026, Mastercard announced the acquisition of BVNK for up to $1.8 billion. The deal is expected to close by the end of the year and could become the largest in the history of stablecoin infrastructure. BVNK enables businesses to send, receive, and convert stablecoins and fiat across multiple blockchains and channels in over 130 countries.

This move shows that Mastercard now sees stablecoins as part of the future payment system. It is no longer just about cards and bank transfers — but about new settlement rails that enable faster and cheaper value transfer.

Visa is sending a similar signal. In a recent report, the company stated that stablecoins could eventually reshape significant parts of the $40 trillion global credit market. According to its data, stablecoins have already facilitated $670 billion in lending over the past five years, with 1.1 million unique borrowers.

The fight for financial infrastructure

For Polymarket, launching its own stablecoin is a way to strengthen its position in a fast-growing market. The platform aims to control not only prediction contracts but also the settlement layer within its ecosystem. In that sense, it is moving in the same direction as larger players: stablecoins are increasingly seen not as a supporting crypto tool, but as the foundation of a new financial infrastructure.

However, as the market grows, so does scrutiny. Rising market capitalization, growing interest from Visa and Mastercard, and expanding use cases are all drawing attention from regulators — both toward prediction markets and stablecoins themselves. As a result, the competition is not only about market share, but also about securing a place in the future financial system while navigating tightening regulation.

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