According to an article on
The company describes the upgrade as a “comprehensive exchange upgrade” that includes a rebuilt trading engine, updated smart contracts and a new collateral token called Polymarket USD. The token will replace USDC.e, a bridge version of Circle’s USDC stablecoin derived from Ethereum (ETH) and available on other chains.
USDC.e acts as an alternative to native USDC, but relies on bridge infrastructure, which can introduce additional risks and friction. By moving to its own collateralized token that is tied one-to-one with USDC, Polymarket appears to be aiming for tighter controls on settlement and liquidity.
The update follows previous signals that a broader strategy for the coin is in the works. In October, Polymarket’s chief marketing officer confirmed plans for the POLY token but did not provide a timeline or details about its functionality.
The coin has not been officially announced yet. Still, its potential role has raised concerns.
Polymarket has long relied on UMA’s “optimistic predictions” to address market outcomes. In this system, users propose results and UMA token holders vote to resolve disputes. The design rewards consensus rather than accuracy, which critics say could bias results to large token holders.
Recent controversies, including those related to geopolitically themed markets, have exposed these limitations. If POLY is used for internalized solutions, it could signal a shift toward internal truth governance.
Read more: Polymarket withdraws controversial Iran bailout after backlash
A hypothetical model separates transactions from governance. Users will continue to stake on stablecoins such as Polymarket USD, while POLY (if launched) will handle dispute resolution and market management. This split allows the platform to price honesty independently of transaction outcomes.
Polymarket’s push comes as it rebuilds its business in the United States. The platform closed its domestic operations in 2022 but registered with the Commodity Futures Trading Commission in July 2025. The platform has since reported strong growth and is valued at more than $20 billion.
The upcoming token issuance and changes to the infrastructure indicate that the company is tightening its control over transactions and truth – the two pillars that define prediction markets.
Read more: Prediction market backlash could form storm clouds in 2027