In order to switch its platform from bridging USDC to native USDC issued directly on Polygon, Polymarket has teamed up with Circle. The change eliminates the need for cross-chain bridges as collateral for settlements.
Compared to bridged tokens, native USDC offers more efficiency and lower risk by enabling one-to-one redemption for US dollars through Circle’s regulated businesses. All trading, settlement, and order activity on Polymarket will be impacted by the change.
Cross-chain bridges usually introduce security trade-offs by locking assets on one network and issuing wrapped equivalents on another. As participation increases, Polymarket hopes to streamline its settlement layer through native issuance.
The founder of Polymarket says this move creates a steady system using the U.S. dollar for their betting markets, which track things like politics, news, and crypto prices. This follows a bigger trend where companies prefer using official “stablecoins” (digital coins tied to the dollar) instead of using temporary links to move money between different systems. As the global runner-up in market share, USDC continues to play a vital role by providing extensive liquidity throughout the DeFi ecosystem.
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