Crypto-based prediction market Polymarket is reportedly considering launching its own stablecoin as a strategy to gain direct control over the yield from interest-bearing reserves that currently back users’ USDC deposits on its platform.

CoinDesk first reported the initiative on Tuesday, citing a source that said no final decision had been made on the matter, but Polymarket was evaluating two potential pathways. 

The first option was launching a platform-native stablecoin, which users could easily convert their USDC or USDT into, keeping the liquidity and yield within Polymarket’s closed trading system.

This story is an excerpt from the Unchained Daily newsletter.

The second option would be entering a revenue-sharing agreement with USDC issuer Circle, potentially allowing Polymarket to share in the interest generated from reserve assets without launching a new token.

The move comes as the broader regulatory environment in the U.S. becomes more accommodating: recent federal legislation like the GENIUS Act has provided clearer legal frameworks for stablecoin issuers.