Polymarket Reveals Exchange Upgrade and Native Stablecoin

TLDR

• Polymarket announced a full upgrade of its exchange stack with new contracts and a rebuilt trading engine.
• The company will launch CTF Exchange V2 with a faster matching engine and lower gas usage.
• Polymarket will introduce Polymarket USD as a new collateral token backed 1 to 1 by USDC.
• The platform will replace USDC.e and migrate users through a frontend wrapping process.
• Polymarket will clear existing order books during a short maintenance window before completing the transition.

Polymarket confirmed a full platform upgrade that will introduce a rebuilt trading engine and a native USD stablecoin. The company said it will deploy new contracts, a new order book, and a new collateral token within weeks. The update marks its largest exchange stack change since launch.

Polymarket to launch CTF Exchange V2 with new order book

The team said V2 will use a faster matching engine that reduces validation steps and lowers gas costs. It also confirmed that the updated order struct will trim required fields and streamline execution. As a result, the exchange expects improved efficiency across trades.

Polymarket said V2 will introduce a revised Central Limit Order Book that blends offchain order placement with onchain settlement. The company instructed developers to update their SDKs and re-sign orders using the new struct. It stated, “Developers building bots or custom integrations will have to update your SDK and re-sign orders.”

During the migration, Polymarket will clear all existing order books and pause activity for a short period. The company said it will announce the maintenance schedule at least one week in advance. It added that most users will experience limited disruption during the transition.

Polymarket USD to replace USDC.e as new collateral token

Polymarket confirmed it will introduce Polymarket USD as a new collateral asset backed 1:1 by USDC. The company said this token will replace USDC.e, a bridged USDC version on Polygon. Some users had raised concerns about USDC.e because Circle does not issue it natively on Polygon.

The company announced in February that it would move toward a native USDC issued by Circle. It reiterated that Polymarket USD will hold full USDC backing at a 1:1 ratio. The platform said this shift will align collateral with official USDC reserves.

Polymarket stated, “For most users, this transition is seamless.” It explained that the frontend will handle token wrapping with a one-time approval prompt. However, it said power users must wrap USDC.e or USDC into Polymarket USD through the Collateral Onramp contract wrap() function.

The upgrade will also add support for EIP-1271, which allows smart contract wallets to sign orders directly. This feature will enable multi-signature wallets such as Safe to interact without intermediaries. Polymarket did not reference the POLY token in this announcement.

The Block reported earlier that Polymarket is seeking fresh funding at a near $20 billion valuation. The startup launched in 2020 and operates as a fully onchain prediction market. Intercontinental Exchange, the parent company of the New York Stock Exchange, backs the firm.

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