Prediction platform Polymarket will roll out a major exchange infrastructure upgrade in the coming weeks that introduces a new collateral token and revamped trading contracts designed to tighten settlement control and reduce reliance on bridged assets.
Polymarket said it will deploy version 2 exchange contracts to simplify order structure and matching, improve trading efficiency, and make it easier for developers to connect apps and trading bots. The new system will also implement EIP-1271, allowing smart contract–based wallets (such as multisigs and automated trading systems) to sign transactions and broadening compatibility beyond single-key wallets.
A key element is Polymarket USD, a new collateral token fully backed 1:1 by USDC that will replace USDC.e, the bridged USDC previously used on the platform. Using a USDC-backed token gives Polymarket more direct control over its settlement layer and reduces dependence on external bridged tokens. For most users the platform will handle the transition automatically through its interface; users will need to provide a one-time approval. Polymarket has not given a precise launch date beyond saying the upgrade will happen over the next few weeks.
The upgrade follows Polymarket’s broader moves to strengthen market integrity and align more closely with U.S. regulatory expectations. In November the platform received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the United States, clearing the way for a return to the U.S. market and plans to onboard brokers and customers directly while routing trading through regulated venues.
Polymarket has also updated rules to curb manipulation and insider trading risks as part of that compliance push. Interest in prediction markets has been rising, and data shows Polymarket’s fee revenue climbed sharply after recent fee changes, reflecting increased activity on the platform.
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