Circle Partners with Polymarket to Introduce Native USDC

Key Insights

• Circle and Polymarket have partnered with the stablecoin issuer to integrate its USDC with the prediction market platform.
• Polymarket has been using bridged USDC.e before now, but that is set to change.
• The prediction markets sector is growing with sustained volume even as the crypto market declines.

Stablecoin issuer Circle has announced a partnership with prediction market platform Polymarket. The partnership would finally allow Polymarket to support native USDC.

Before now, the bridged version of USDC.e, a stablecoin, was the major stablecoin on Polymarket. This means that deposits from EVM chains are automatically converted to bridged USDC.

USDC Now Available for Collateral and Trading Activity on Polymarket

According to the Circle’s announcement, the Polygon-based prediction market platform will transition to USDC as collateral for all its trading activity. This is expected to happen in the coming months.

Speaking in the development, Circle CEO Jeremy Allaire said that the stablecoin issuer has been driving the Internet financial system. It is now adding a leading platform to the mix to give Polymarket users the best experience

He said:

“Polymarket has been at the forefront of innovation in marrying the speed of information with the speed of markets, and with the partnership we are building, we bring the utility and speed of USDC to provide the best possible experience for Polymarket users.”

Meanwhile, this is just one of the multiple partnerships that Polymarket has entered into in recent months. The platform also recently partnered with Intercontinental Exchange, the parent company of the NYSE.

For Circle, the deal means another opportunity to integrate its USDC stablecoin into the onchain financial ecosystem. USDC is the second biggest stablecoin by market cap and has positioned itself as a more compliant alternative to Tether USDT.

Polymarket founder Shayne Coplan also acknowledged the importance of the partnership. He stated that Circle has some of the most critical crypto infrastructure, and the partnership will enhance prediction markets.

He said:

“Using USDC supports a consistent, dollar-denominated settlement standard that enhances market integrity and reliability as participation on the platform continues to grow.”

Predictions Market Grows Amidst Crypto Sector Struggles

The Polymarket and Circle partnership highlights how certain subsectors continue to grow even as the crypto market collapses. Prediction markets have been growing in popularity since 2024, but hit a new high last year with over $37 billion in volume.

Many expect the trend to continue in 2026, particularly as several big names plan to launch their platforms this year. Gambling companies such as DraftKings and FanDuel will debut their prediction platforms this year.

Crypto exchanges such as Crypto.com, Coinbase, and Gemini, as well as fintech Robinhood, are also involved. Even TradFi exchanges such as CBOE and Chicago Mercantile Exchange have shown interest, while decentralized derivatives exchange Hyperliquid is also planning to add prediction markets.

Still, Polymarket and Kalshi remain the two biggest prediction platforms and look set to solidify their position in 2026. With the sector’s growth, it is not surprising that it is also attracting investors. Opinion, a blockchain-based predictions market platform, recently raised $20 million in a pre-Series A round.

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