Polymarket said it will roll out what it describes as its biggest infrastructure upgrade since launch within the next 2 to 3 weeks, rebuilding its core trading engine, replacing key smart-contract components, and introducing a native dollar stablecoin called Polymarket USD. The new asset will launch on Polygon and be pegged 1:1 to USDC, replacing the bridged USDC.e currently used on the platform.
Hybrid CLOB model will reshape order matching
The center of the upgrade is a redesigned central limit order book built on a hybrid structure. Polymarket plans to combine off-chain order matching with on-chain, non-custodial settlement through a new CTF Exchange V2 smart-contract system. In its technical documentation, the company describes this as a hybrid-decentralized model in which an operator handles matching off-chain while final settlement remains on-chain. The stated goal is to improve both performance and security for high-volume event markets.
CTF Exchange V2 is also expected to introduce new matching logic and revised order-data structures. Polymarket says these changes are meant to improve matching efficiency and reduce gas costs for traders. During the migration, existing order books will be cleared, and the company said users will receive at least one week of notice before maintenance starts.
Polymarket USD becomes the platform’s core collateral layer
On the asset side, Polymarket USD formalizes a broader move away from bridged liquidity on Polygon. The platform has already been working with Circle to shift trading, order placement, and settlement from USDC.e to native USDC. Under the new setup, Polymarket USD will remain pegged 1:1 to USDC and serve as the main collateral asset across the platform. Deposits coming from networks including Ethereum, Solana, Arbitrum, and Base will be automatically converted into the new stablecoin on Polygon.
Circle has said native USDC, redeemable 1:1 for U.S. dollars through its regulated entities, is more capital-efficient and avoids the bridge risk tied to wrapped or bridged tokens because collateral maps directly to Circle’s reserves. In practice, Polymarket’s new stablecoin structure locks in a native-dollar settlement route across the exchange.
EIP-1271 support is aimed at institutional wallets
Polymarket will also add support for EIP-1271 (ERC-1271), allowing smart-contract wallets such as Safe to validate signatures and trade directly. The company said this is intended to expand access for institutions and advanced users. Because the standard lets contracts define signature validation through an isValidSignature method, DAOs, funds, and multi-signature setups can participate in non-custodial markets without depending on externally owned accounts.
Polymarket has recently attracted hundreds of millions of dollars in liquidity. The report also noted that Intercontinental Exchange invested $600 million strategically in the company, while ICE said its combined direct and secondary investment totaled $1.6 billion. ICE does not expect that amount to be material to its financial results, but the investment positions it as a major backer as prediction markets push for broader adoption in finance. Polymarket is using lower-cost execution, native dollar liquidity, and institution-ready wallet support to defend its lead in the on-chain prediction market segment.