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Polymarket will rebuild its core engine, introduce a hybrid CLOB, and launch Polymarket USD, a USDC\u2011backed stablecoin on Polygon aimed at cheaper, more institution\u2011friendly trading.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n On\u2011chain prediction market Polymarket will roll out what it calls \u201cthe largest infrastructure upgrade since its launch\u201d in the coming 2\u20133 weeks, rebuilding its core trading engine and debuting a native dollar stablecoin, Polymarket USD, according to plans shared with The Block. The company said the overhaul will \u201ccompletely reconstruct\u201d its matching engine via a new CTF Exchange V2 smart\u2011contract system, while introducing a native stablecoin pegged 1:1 to USDC to replace the current bridged USDC.e on Polygon<\/a>. Existing order books will be cleared during the migration, with Polymarket promising to give users at least one week\u2019s notice before maintenance begins.<\/p>\n At the heart of the upgrade is a redesigned Central Limit Order Book that uses a hybrid model of off\u2011chain order matching combined with on\u2011chain, non\u2011custodial settlement. In technical documentation for its CTF Exchange, Polymarket describes the architecture as a \u201chybrid\u2011decentralized model\u201d where an operator handles off\u2011chain matching while settlement remains on\u2011chain, a setup it says optimizes \u201cperformance and security\u201d for high\u2011volume event markets. The Block reports<\/a> that CTF Exchange V2 will introduce new matching logic and order\u2011data structures intended to improve matching efficiency and reduce gas costs for traders.<\/p>\n Polymarket<\/a> has grown into one of the largest fully on\u2011chain prediction venues, recently drawing hundreds of millions of dollars in liquidity and a $600 million strategic investment from Intercontinental Exchange (ICE) as part of a broader bet on decentralized betting markets. ICE said its combined $1.6 billion of direct and secondary investment is not expected to be material to its financial results but positions the exchange operator as a key backer in what it calls a \u201cDavid and Goliath battle\u201d to bring prediction markets into the financial mainstream.<\/p>\n On the asset side, Polymarket USD formalizes a shift already underway in partnership with Circle to move from bridged USDC.e to native USDC on Polygon for all trading, order placement, and settlement. Circle<\/a> has said native USDC, redeemable 1:1 for US dollars through its regulated entities, offers a \u201ccapital\u2011efficient\u201d and more secure alternative to bridged tokens by eliminating cross\u2011chain bridge risk and tying collateral directly to its reserves. In line with that, Polymarket USD will be pegged 1:1 to USDC and used as the core collateral across the platform, with deposits from networks such as Ethereum, Solana, Arbitrum, and Base automatically converted into the new stablecoin on Polygon.<\/p>\n Polymarket will also add support for the EIP\u20111271 (ERC\u20111271) standard, allowing smart\u2011contract wallets such as Safe to validate signatures and trade directly, a move aimed at \u201cexpanding use cases for institutions and advanced users.\u201d EIP\u20111271 lets contracts define an isValidSignature method with arbitrary logic, making it easier for DAOs, funds, and multi\u2011sig setups to participate in non\u2011custodial markets without relying on externally owned accounts. The upgrade comes as competition in prediction markets intensifies, with Polymarket using performance, native dollar liquidity, and institutional\u2011grade wallet support to defend its lead in what it brands \u201cThe World\u2019s Largest Prediction Market.\u201d<\/p>\n <\/p><\/div>\n\n\n