Polymarket is preparing a major infrastructure overhaul that includes launching new exchange contracts and replacing its existing bridged stablecoin. The company announced plans to deploy version 2 exchange contracts designed to simplify order structure and improve how trades are matched.
The upgraded system aims to increase trading efficiency and make it easier for developers to integrate trading bots and external applications. It will also support the EIP-1271 standard, allowing smart contract wallets such as multisignature systems to sign transactions, expanding compatibility beyond traditional wallets.
A key part of the upgrade is the introduction of Polymarket USD, a new collateral token backed 1:1 by USD Coin. This token will replace USDC.e, the bridged version previously used on the platform. The change is expected to reduce reliance on bridged assets and provide Polymarket with greater control over settlement and risk management. For most users, the transition will occur automatically through the platform interface, requiring only a one-time approval.
Regulatory Alignment and Growing Market Activity
The overhaul reflects broader efforts by Polymarket to strengthen market integrity and align more closely with United States regulatory standards. In November, the company received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the country, allowing it to return after previously exiting the US market.
Following regulatory clearance, Polymarket outlined plans to onboard brokers and customers directly while facilitating trades through regulated venues. The platform has also introduced measures to reduce manipulation and insider-trading risks as interest in prediction markets continues to grow.
Industry data indicates that Polymarket’s fee revenue has increased sharply in recent weeks, particularly after the platform expanded its trading fee structure, reflecting rising participation in markets tied to politics, financial events, and public policy outcomes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.