More Stablecoin Initiatives: Polymarket Could Be Set To Launch Its Own Stable Asset


More Stablecoin Initiatives: Polymarket Could Be Set To Launch Its Own Stable Asset


Key Insights:

  • Polymarket is considering creating its own stablecoin to gain control over USDC reserves and yield.
  • The move would require only a few infrastructure changes due to the platform’s closed-loop ecosystem.
  • New U.S. stablecoin laws have made issuance more attractive to both crypto-native and trad-fi firms.
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Polymarket is now reportedly considering the launch of its own stablecoin. The predictions platform is doing this to take ownership of the yield generated by the reserves that currently back USDC deposits on the platform. 

In essence, the move could give the company more control over its internal economy in light of the newly approved GENIUS and CLARITY acts.

Why Polymarket Wants to Launch a Stablecoin

According to a source familiar with the matter, Polymarket wants to stop leaving money on the table. By issuing its own stablecoin, Polymarket would gain control over the cash and short-term Treasuries that back all of the USDC that is used to make bets on its platform. 

By doing so, the betting platform can generate yield, and scale or even fund future growth.

The insider explained that the changes that PolyMarket intends to make could be relatively simple, because of Polymarket’s closed ecosystem. 

“All they really need to do is be able to exchange USDC or USDT into whatever their custom stablecoin is,” the source said. Since users only use the token within Polymarket, there’s no need to build any kind of complex solutions to support external transfers, payments or bank off-ramps.

Stablecoin, A Simpler Path Compared to Other Firms

Launching a stablecoin can be challenging from a regulatory standpoint, and from a technical one. This is especially true for startups.

However, Polymarket’s specific use case reduces these hurdles. This is because users remain within its platform, and the company can easily avoid the headaches that come with real-world utility like retail transactions, cross-border settlements or point-of-sale integrations.

“You don’t have to worry about the last mile on-ramp and off-ramp,” the source said. “That’s a very simple thing to build and easy to secure”

Considering the recent success of the GENIUS and CLARITY Acts in the US last week, the timing may be perfect. Regulatory clarity is encouraging for both crypto-native platforms and trad-fi institutions that are considering launching their own stablecoins. 

Firms like Tether and Circle have shown that stablecoins can be lucrative, and Polymarket wants its own slice of that pie.

No Final Decision Yet

Even though the discussions are currently ongoing, Polymarket has not yet made a final decision. A representative for the company confirmed that while the idea is being considered, there’s no official plan or announcement at this point.

Still, PolyMarket has much to gain from this initiative. The platform saw over $8 billion in betting volume during the previous U.S. election cycle alone. In May, the site drew around 15.9 million visits, according to SimilarWeb. With that kind of activity, there are major stablecoin reserves flowing through the system and lots of unrealized yield to be earned.

By keeping those reserves in-house through a custom stablecoin, Polymarket could unlock an entirely new revenue stream for itself, and not have to share with Circle.

In addition to all of this, Polymarket is also preparing to reenter the U.S. market. The firm is acquiring US-based QCEX, which could give Polymarket a foothold in the United States. Overall, if Polymarket decides to issue a stablecoin, it would mark a major milestone in the future of prediction markets and crypto-finance. 

The post More Stablecoin Initiatives: Polymarket Could Be Set To Launch Its Own Stable Asset appeared first on Live Bitcoin News.





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