Polymarket is overhauling its platform as it targets institutional traders and tighter regulatory standards.
The company is shifting from a retail-focused prediction market to a more advanced trading venue. The upgrade includes a redesigned engine and a new stablecoin for settlements.
Rebuilt trading infrastructure targets professional users
Polymarket has introduced a new trading engine designed to improve speed and execution accuracy. The updated system includes a rebuilt order book and matching mechanism. These changes aim to deliver faster trade settlements and reduce transaction costs.
The platform also adds support for EIP-1271. This feature allows smart contract wallets, including multisignature setups, to authorize trades. It expands compatibility with automated systems used by professional trading firms.
The transition will affect existing users. Polymarket plans to cancel all open orders during migration to prevent conflicts with the new system. Traders will receive advance notice before the switch takes place.
Automated traders and developers will need to adjust. Bots and API integrations must be updated to align with the new order structure. This step is necessary to ensure smooth operation once trading resumes.
New stablecoin replaces bridged assets
Polymarket is also launching a new settlement asset called Polymarket USD. This token will replace the previously used bridged USDC.e on Polygon. The move is designed to simplify transactions and reduce risks linked to bridged tokens.
The new stablecoin will be backed one-to-one with Circle’s USDC. Users must convert their existing balances into Polymarket USD through a smart contract process. This ensures continued access to trading after the upgrade.
Bridged assets like USDC.e have added complexity in the past. By issuing its own collateral token, Polymarket aims to streamline liquidity management. The change also aligns the platform with standards expected by institutional participants.
Some users speculate the new token could open additional revenue streams. It may also support future incentives or yield-based features for users holding funds on the platform.
Institutional push follows major investment and compliance focus
The upgrade comes shortly after a major investment from Intercontinental Exchange. The firm invested $600 million as part of a broader plan to commit up to $2 billion. This backing signals growing interest in prediction markets from established financial players.
At the same time, regulatory pressure is increasing. Authorities are paying closer attention to crypto-based prediction platforms, especially in the United States. Some jurisdictions have already restricted certain forms of betting activity.
Polymarket’s latest changes reflect this environment. The company is strengthening its infrastructure while preparing for stricter compliance requirements. Improved systems and standardized settlement tools could help it operate within evolving regulations.
By combining a new trading engine with a dedicated stablecoin, Polymarket is repositioning itself. The platform is moving toward a structure that better supports institutional trading and regulatory expectations.
