Polymarket Announces Major Infrastructure Overhaul with Native Stablecoin Launch

Polymarket announces its largest infrastructure upgrade since launch, introducing Polymarket USD as a native stablecoin backed 1:1 by Circle's USDC and deploying CTF Exchange V2 with optimized order structures and smart contract wallet support. The migration from USDC.e to Polymarket USD will occur over two to three weeks, with automatic frontend handling for most users while power traders must manually wrap collateral. The upgrade comes as Polymarket filed U.S. trademarks for POLY and $POLY in February 2025, fueling speculation about a native token launch as the platform prepares for U.S. market expansion. The developments unfold amid ongoing regulatory battles, with the CFTC suing four states to assert exclusive jurisdiction over prediction markets while state regulators continue cracking down on platforms they claim operate as unlicensed sports betting services.

Launch of Polymarket USD Stablecoin and Migration Timeline

• ▪Polymarket USD will be backed 1:1 by Circle's USDC.
• ▪The Polymarket frontend handles wrapping to Polymarket USD automatically with a one-time approval prompt for most users.
• ▪Power users and API-only traders on Polymarket will need to wrap their USDC or USDC.e into Polymarket USD via the Collateral Onramp contract's wrap() function.
• ▪Polymarket USD will serve as the settlement token for all Polymarket contracts.
• ▪Polymarket is launching a crypto collateral token called Polymarket USD.

Infrastructure Upgrade: CTF Exchange V2 and New Order Books

• ▪Polymarket's new order book automatically handles the switch from version 1 to version 2.
• ▪Polymarket is launching CTF Exchange V2 as an upgrade to the existing Exchange contract.
• ▪Polymarket CTF Exchange V2 optimizes fee collection and distribution.
• ▪Polymarket CTF Exchange V2 optimizes and simplifies the Order structure.
• ▪Polymarket CTF Exchange V2 will support EIP-1271 for secure authentication of smart contract wallets.
• ▪Polymarket CTF Exchange V2 includes builder codes for on-chain order attribution.

Regulatory Context and Future Token Launch Speculation

• ▪The CFTC recently sued four U.S. states reiterating its exclusive jurisdiction over prediction markets.
• ▪Polymarket filed U.S. trademarks for POLY and $POLY in February 2025.

Perspective of CFTC

• ▪The CFTC claims exclusive jurisdiction over prediction markets in the United States.

Perspective of Crypto market observers

• ▪Polymarket's February 2025 trademark filings for POLY and $POLY suggest plans for a native token launch.

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