Polymarket announced the “biggest change to date” as the prediction market is overhauling its entire exchange stack over the next two to three weeks.
The company announced on Monday new smart contracts, a redesigned order book and a new collateral token called Polymarket USD, backed 1:1 by Circle Internet Group Inc.’s (NYSE:CRCL) USDC (CRYPTO: USDC).
Rather than using USDC directly, Polymarket is wrapping it into a branded settlement token.
The frontend handles the conversion automatically for most users, but the underlying reserves sit in USDC, meaning Circle still captures the interest income on every dollar in the system.
Why CRCL Holders Should Care
Circle earns revenue on the interest generated by dollar reserves backing USDC.
More Polymarket volume means more USDC locked in smart contracts means more interest income for Circle.
CEO Jeremy Allaire told analysts on Circle’s Q4 earnings call that USDC lets prediction market …
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