# Polymarket Native Stablecoin

Polymarket's native stablecoin refers to Polymarket USD, abbreviated as PM USD, which is the proprietary collateralized token recently announced by the Polymarket platform.

Key Information
① 1:1 Peg to USDC: Fully backed by USDC issued by Circle (1:1 support), essentially an "wrapped" or "native" stablecoin used internally on the platform.

② Usage: Serves as the primary collateral and settlement asset for all prediction market transactions on Polymarket, replacing the previously used USDC.e (Cross-chain bridged USDC on Polygon).

③ Launch Background: This is part of Polymarket's "largest infrastructure upgrade since launch" (expected to be rolled out gradually over the next 2–3 weeks), including:
- Rebuilding the trading engine (CTF Exchange V2)
- New order book structure
- Gas fee optimization and matching efficiency improvements
- Support for smart contract wallets (e.g., Safe, multi-signature wallets), etc.

Why launch a native stablecoin?

① Enhanced Security and Consistency: USDC.e is a bridged asset and carries bridging risks; Polymarket USD is directly issued by the platform, making it safer and with lower friction.

② Platform Control: Allows Polymarket to better manage internal fund flows, potentially generating yield or optimizing the ecosystem in the future (there have been rumors that Polymarket aims to capture USDC reserve yields through its own stablecoin).

③ User Experience: For most users, migration is automatic (handled on the frontend with a one-time authorization); advanced users or API/Bots need to manually wrap USDC → Polymarket USD.

Previously, Polymarket mainly used **USDC** (or USDC.e) as the trading currency, with all Yes/No shares denominated in USD. 1 USDC could mint 1 Yes + 1 No share, and winning shares could be redeemed for 1 USD.

This upgrade marks Polymarket's shift toward a more professional, institutional-grade prediction market platform, while also preparing for potential expansion into the U.S. market.

If you'd like to know the specific migration steps, how to wrap funds, or the trading changes after the upgrade, provide more details and I can help look into it!

$BTC