Prediction market platform Polymarket will replace USDC with its own stablecoin, Polymarket USD, as it moves to internalise liquidity management.

The token will be pegged one-to-one with the US dollar and used to settle bets on the platform.

The shift was discussed on the Blockchain Bulletin podcast, where host Callum Williams said the move reduces reliance on third-party assets. By issuing its own stablecoin, Polymarket gains direct control over liquidity, settlement and risk.

Williams noted: “An in-house stablecoin to settle prediction bets enables Polymarket greater control over its liquidity.”

Across the wider market, institutional activity is increasing. Morgan Stanley has launched a Bitcoin ETF on NYSE Arca, pricing it below competitors from Grayscale and BlackRock.

Regulation is also tightening. Under the proposed US Genius Act, the Federal Deposit Insurance Corporation confirmed stablecoin deposits will not earn interest and opened a 60-day consultation on capital, liquidity and custody rules.

Elsewhere, six Swiss banks are testing a fully backed digital Swiss Franc to reduce reliance on US dollar stablecoins.

Security remains a concern. The Federal Bureau of Investigation reported $11bn lost to crypto scams last year, up 22%, with much of the activity linked to Southeast Asia.