Breaking news: Prediction market launching its own stablecoin? Will it impact the market share of other stablecoins? Polymarket just announced a major update: full exchange upgrade. Estimated timeline: 1-2 weeks. The biggest highlight? The launch of their native stablecoin, Polymarket USD. This means the prediction market is building its own financial infrastructure. Beyond addressing bridging risks, gas fees, and order matching efficiency, the goal seems to be simplifying the user experience—eliminating even the need for deposits. It’s all about making it super easy to get started, likely to attract more Web2 users. As for whether this will impact other stablecoins in the market, here’s the straight answer: it won’t have any substantial impact, almost none at all. Why? Because Polymarket USD is fully backed 1:1 by real USDC. When users transfer funds, it’s automatically converted 1:1. It’s only used as collateral within the Polymarket prediction market and won’t circulate freely in other DeFi, payment, or CEX scenarios. Lastly, its core purpose isn’t to compete for stablecoin market share but to optimize Polymarket’s own infrastructure.