Polymarket to Challenge USDT and USDC with New Stablecoin!

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RLUSD, USDT and USDC to Welcome New Rival From Polymarket

Polymarket, a well-known platform for prediction markets, is introducing its own stablecoin called PolymarketUSD. This new digital currency aims to compete with other popular stablecoins like Ripple’s RLUSD, Circle’s USDC, and Tether’s USDT.

Polymarket upgrade targets faster execution, reduced bridge risks

The prediction platform is switching from its current USDC version to a new type of token. This new token will always be worth the same as USDC (a 1:1 backing), but it’s different from regular stablecoins like RLUSD or USDT because it can only be used within the Polymarket platform itself.

Polymarket will automatically exchange USDC for PolymarketUSD with a single approval from users. After that, the process will run smoothly.

As an analyst following the prediction market space, I’m seeing a significant shift from Polymarket. They’ve announced they’re moving away from using USDC.e and are introducing their own stablecoin, PolymarketUSD. This new token will be backed one-to-one by USDC, essentially meaning each PolymarketUSD will be worth one dollar. Importantly, those who frequently use the platform or trade via API will need to convert their existing USDC or USDC.e into PolymarketUSD to continue trading.

— Wu Blockchain (@WuBlockchain) April 7, 2026

Experienced traders who use tools like trading bots or automated systems will need to convert their tokens themselves.

This upgrade is crucial for reducing risks associated with the platform’s underlying technology and improving how quickly and efficiently trades are processed. It will also give Polymarket more control over funds used as collateral, and make its internal financial tracking easier, by using its own tokens.

This update will improve the platform’s underlying technology and reduce transaction costs. It will also allow for easier and more adaptable future upgrades, thanks to the introduction of a dedicated token. Ultimately, these changes aim to make Polymarket more efficient and appealing to larger, professional traders.

Polymarket’s new stablecoin could be a sign of bigger plans for the prediction-market space, especially as the platform gains more traction. Because many professional traders use smart contract wallets, Polymarket may be getting ready to support automated trading and attract more significant investors.

A Polymarket user named Tx_Hash is urging the platform to simplify and lower the costs of wrapping and unwrapping crypto. They believe high fees could drive away the platform’s most engaged users.

Stablecoin market still dominated by major players

PolymarketUSD could slightly reduce reliance on major stablecoins like RLUSD and USDT. 

Despite this, they continue to lead the market because their operations aren’t restricted to a single platform – they work worldwide, unlike PolymarketUSD.

By March 2026, the use of stablecoins for international business payments skyrocketed by 733%, reaching $226 billion globally. This growth was largely driven by Ripple’s USD stablecoin and Tether. However, PolymarketUSD will be different – it’s designed for use only within a single organization and won’t be available for broader international transactions.

Tether continues to be a dominant force in the stablecoin market, currently boasting an impressive $84 billion value. It would be very difficult for any new stablecoin to surpass that level.

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2026-04-07 16:52