Polymarket plans a significant exchange upgrade in the coming weeks that replaces its bridged USDC token and revamps core trading contracts. The rollout includes a new collateral token, simplified order mechanics and compatibility improvements aimed at tightening settlement control and reducing dependence on external bridged assets.
The platform will deploy version 2 exchange contracts to streamline order structure and matching, improve trading efficiency, and make it easier for third-party apps and trading bots to integrate. The new contracts add support for EIP-1271, enabling smart contract wallets such as multisigs and automated trading systems to sign transactions, broadening compatibility beyond single-key wallets.
Central to the upgrade is Polymarket USD, a new collateral token fully backed 1:1 by USDC that will replace USDC.e (the bridged USDC previously used). Moving to a USDC-backed token gives Polymarket more direct control over its settlement layer and lessens reliance on bridged tokens. Polymarket says the migration will be handled automatically through its interface for most users; a one-time approval will be required. No exact launch date has been set, only that the transition will occur within the next few weeks.
The technical upgrade accompanies Polymarket’s wider efforts to strengthen market integrity and align with U.S. regulatory expectations. In November, Polymarket received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the United States, clearing a path for returning to the U.S. market, onboarding brokers and customers directly, and routing trades through regulated venues.
As part of its compliance push, Polymarket has tightened rules to reduce manipulation and insider trading risks. Interest in prediction markets appears to be growing: the platform reported a sharp rise in fee revenue after recent fee changes, reflecting increased trading activity.
Polymarket frames the upgrade as both a technical and governance step — improving trading performance and settlement control while responding to regulatory and market-integrity priorities. Readers are encouraged to verify details independently; this article was prepared in accordance with Cointelegraph’s editorial standards.