Polymarket, the prediction market platform, is set to overhaul its exchange infrastructure in the coming weeks, introducing an upgraded trading system and a new collateral token. The announcement, made on Monday, outlines plans to deploy what the company calls version 2 exchange contracts, designed to simplify how orders are structured and matched. The changes are intended to make trading more efficient and to lower the barrier for developers building apps and trading bots that connect to the platform.
A key feature of the new system is support for EIP-1271, an Ethereum standard that enables smart contract-based wallets — including multisigs and automated trading systems — to sign transactions. This expands compatibility beyond traditional wallet types, broadening the range of participants who can interact with the platform. The upgrade reflects a broader push to modernize the platform’s technical foundation.
Central to the overhaul is the introduction of Polymarket USD, a new collateral token that will replace USDC.e, the bridged version of USDC previously used on the platform. The new token is backed 1:1 by USDC, giving Polymarket more direct control over its settlement layer. The company says this change also reduces its reliance on bridged assets, which can introduce additional risk and complexity.
For most users, the transition to the new system is expected to be largely seamless, requiring only a one-time approval through the platform’s interface. The full rollout is anticipated over the next few weeks, though Polymarket has not specified an exact date. The company has framed the upgrade as a step toward greater operational control and market integrity.
The infrastructure changes follow Polymarket’s broader efforts to address manipulation and insider-trading risks as it works to align more closely with US regulatory expectations. In November, the platform received approval from the Commodity Futures Trading Commission to operate an intermediated trading platform in the United States. That clearance paved the way for Polymarket’s return to the US market after it had previously exited.
Following the regulatory approval, Polymarket indicated plans to onboard brokers and customers directly and to facilitate trading through regulated US venues. The company’s ambitions in the US market come as interest in prediction platforms continues to grow, with users increasingly trading on real-world outcomes tied to politics, markets, and policy. Industry data indicates that Polymarket’s fee revenue has risen in recent weeks after the platform expanded its trading fees.
Originally reported by CoinTelegraph.
