Polymarket, the largest fully onchain prediction market, is overhauling its exchange infrastructure, replacing bridged USDC.e with a native USDC-backed token, revamping its trading engine, and rolling out multisig wallet support—marking the platform’s boldest move since launch.
At the center of Polymarket’s upgrade: Polymarket USD, a 1:1 USDC-backed native token replacing USDC.e, the bridged Polygon version. By moving away from cross-chain collateral, Polymarket eliminates settlement vulnerabilities while keeping dollar parity.
“For most users, conversion is seamless with a one-time frontend approval,” Polymarket said, noting power users can manually wrap via the Collateral Onramp contract. This shift dramatically reduces counterparty risk, enhances transparency, and aligns with tightening U.S. regulatory standards.
Trading Engine Gets Full Rebuild
Polymarket is deploying version 2 exchange contracts, its most significant infrastructure change since 2020. With V2, Polymarket's faster and more efficient matching engine requires fewer operations and lower gas fees.
V2 will also feature an updated Central Limit Order Book (CLOB) combining onchain execution with offchain efficiency.
"During the upgrade, all existing order books will be cleared. There will be a short maintenance window. We'll announce the exact date and time at least one week in advance."
One of the most significant upgrades is Polymarket’s support for EIP-1271, enabling multisig and smart contract wallets to access institutional-grade trading tools that were previously restricted to traditional wallets.
Developers integrating bots or custom SDKs will need to update orders, while most users experience minimal disruption during a brief maintenance window.
This technical overhaul coincides with Polymarket’s CFTC approval to operate an intermediated trading platform in the United States, enabling direct onboarding of brokers and customers through regulated venues. The move signals a compliance-first strategy, positioning Polymarket as the U.S.’s premier regulated prediction market.
Backing from NYSE parent Intercontinental Exchange ($600M investment) underscores institutional confidence and highlights the startup’s pivot toward mainstream adoption.
Explosive growth and institutional ambitions
Interest in prediction markets—covering politics, markets, and policy—has continue to grow, with March volumes hitting $10.4 billion, boosted by expanded trading fees.
V2’s developer-friendly contracts and native USDC make Polymarket an API layer for quant funds, automated strategies, and multisig wallets, previously excluded by technical limitations.
Polymarket’s bold upgrades trade bridged token risk for regulatory alignment, transforming the platform from a crypto-centric prediction market into a compliant, institutional-grade oracle infrastructure ready for 2026 and beyond.