BULLISH 📈 : Circle and Polymarket integrate native USDC, boost market reliability

Circle and Polymarket Partnership

Circle and Polymarket have partnered to introduce native USDC to the prediction market, replacing the bridged stablecoin version.
Currently, Polymarket uses Bridged USDC (USDC.e) via Polygon. Native USDC allows for direct redemption with Circle's regulated entities, eliminating intermediary protocols.
This change aims to reduce bridging risks, known as vulnerabilities in blockchain systems.

Polymarket's Trading Volume and Market Position

In October 2025, Polymarket recorded $3 billion in trading volume on Polygon with over 338,000 traders.
The platform saw a 57% increase in notional trading volume, reaching $22 billion in the first eleven months of 2025.
As of January 2026, monthly volume was $7.66 billion, making Polymarket the second-largest prediction market globally.
Kalshi remains the largest prediction market with $9.55 billion in volume, attributed to its partnership with Coinbase.

Monthly volume for Polymarket and Kalshi | Source: The Block data

Market Implications and Regulatory Considerations

The integration of native USDC is part of broader efforts by platforms to enhance liquidity and minimize settlement issues.
This shift aligns Polymarket with financial institution standards, amidst increasing regulatory scrutiny on crypto prediction markets.
Instances like Portugal ordering a halt to political betting highlight the regulatory challenges faced by such platforms.