Polymarket, the cryptocurrency-powered prediction market that recently attained a billion dollar valuation, is deciding whether or not to introduce its personal custom-made stablecoin, or settle for a income sharing take care of Circle based mostly on the quantity of USDC held on the platform, in accordance with an individual aware of the plans.
Polymarket’s motivation to create its personal stablecoin is just to personal the yield-generating reserves that again the big quantity of Circle’s USDC dollar-pegged token used to make bets on the favored betting platform, the particular person mentioned.
A Polymarket consultant mentioned no choice has but been made on the stablecoin query.
Laws round stablecoins passed in the U.S. last week makes issuing a stablecoin all of the extra engaging a enterprise proposition for each crypto native companies and extra conventional finance gamers alike who could also be eyeing the success of stablecoin-issuing giants Tether and Circle.
That mentioned, launching a stablecoin is a posh raise for a lot of companies, and USDC issuer Circle is understood to be reducing income sharing offers with exchanges, cost companies and different fintechs so as to keep aggressive within the quickly evolving house.
For Polymarket, issuing its personal stablecoin is a a lot simpler raise from a regulatory standpoint, in accordance with the supply.
“Polymarket is locking a whole lot of stablecoin worth of their betting swimming pools and they also need some sort of mechanism to get the yield,” the particular person mentioned. “Within the case of Polymarket, it’s a closed ecosystem and all they really want to do is to have the ability to change USDC or USDT into no matter their customized stablecoin is. They do not have to fret in regards to the final mile on ramp and off ramp. That is a quite simple factor to construct, and simple to safe and management.”
Spokespeople for Circle didn’t instantly return a request for remark.
The quantity of USDC on Polymarket fluctuates with betting exercise on the platform, however some $8 billion of bets had been positioned throughout final yr’s U.S. election cycle, and the web site attracted some 15.9 million visits in Could, according to SimilarWeb.
The corporate is trying to formally reenter the U.S. with the acquisition of U.S.-based QCEX, following the closure of civil and criminal investigations into its permitting U.S.-based clients to put bets on its platform.