Forecasting platform Polymarket will be revamping its exchange infrastructure in the coming weeks, introducing a modern security token and an improved trading system that will give the platform greater control over settlement and risk as it moves closer to U.S. regulatory expectations.
In Monday’s Polymarket announcement he said will implement modern exchange contracts – called version 2 – designed to simplify the structure and matching of orders. The update aims to raise trading efficiency and make it easier for developers to connect apps and trading bots to the platform.
The modern system will also support EIP-1271, an Ethereum standard that enables contract-based intelligent wallets such as multisig and automated trading systems to sign transactions, extending compatibility beyond established wallets.
The highlight of the update is the introduction of Polymarket USD, a modern security token that will replace USDC.e, the bridge version of USDC (USDC) previously used on the platform. The modern token is fully backed 1:1 by USDC, giving Polymarket more direct control over the settlement layer while reducing its reliance on bridge assets.
For most users, the transition will be carried out automatically through the platform interface and only requires one-time consent.
The update is expected to be rolled out within the next few weeks, although the company did not provide a specific timeline.
Related: NYSE parent ICE is finalizing a modern $600 million investment in Polymarket
U.S. regulatory approval shapes Polymarket expansion
The move follows Polymarket’s broader efforts to reduce the risk of manipulation and insider trading to strengthen market integrity and better align with U.S. regulatory standards.
In November, Polymarket received approval from the Commodity Futures Trading Commission to operate an indirect trading platform in the United States, allowing it to return after previously exiting the market.
Following this approval, Polymarket said it plans to solicit brokers and customers directly and facilitate trading through regulated trading venues in the US.
Interest in prediction markets continues to grow, with users increasingly turning to these platforms to trade based on real-world outcomes related to politics, markets and policies. Industry data shows Polymarket’s fee revenue has increased in recent weeks after the platform expanded transaction fees.
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