Polymarket announces its biggest upgrade to date, introducing a rebuilt trading engine, CTF Exchange V2 smart contracts, and a new USDC-backed collateral token called Polymarket USD.
Polymarket, the largest crypto-based prediction market, is rolling out a comprehensive platform overhaul over the next two to three weeks. The upgrade includes a rebuilt trading engine, new smart contracts, and a native collateral token designed to replace bridged USDC.
Polymarket announced what it calls a "full exchange upgrade" on April 6, describing it as the platform's biggest change to date. The overhaul consists of three core components.
First, the CTF Exchange V2 introduces optimized order structures, faster order matching, and support for EIP-1271 signatures. This enables smart contract wallets and account abstraction, meaning users can interact with the platform through more flexible wallet types. The update also adds builder codes for on-chain order attribution and improved fee collection logic.
Second, Polymarket is launching its own collateral token called Polymarket USD. The token is backed 1:1 by USDC and replaces the bridged USDC.e that the platform currently uses. Users holding USDC or USDC.e on the platform will have their funds wrapped into Polymarket USD automatically through the frontend, requiring only a one-time approval.
The shift away from bridged USDC.e is the most strategically significant part of the upgrade. Bridged tokens carry inherent risk tied to the bridge's security and uptime. By moving to its own collateral token, Polymarket gains tighter control over settlement and liquidity on its platform.
Polymarket processed roughly $9 billion in trading volume during 2024, driven largely by its presidential election markets, and volumes grew further in 2025. The platform has established itself as the dominant prediction market in crypto. This infrastructure upgrade positions it to handle higher volumes and attract institutional participants who require more reliable settlement guarantees.
A separate POLY governance token is still expected but has not yet launched. Its role in the upgraded platform remains to be defined.
The rollout is scheduled over two to three weeks starting in early April. Key milestones include the migration of existing USDC.e balances to Polymarket USD and the activation of CTF Exchange V2 contracts. Any disruption during the migration period could temporarily affect trading activity. The planned POLY governance token launch timeline will also be closely monitored.
Polymarket's exchange overhaul represents a significant infrastructure investment for the prediction market leader. The transition from bridged assets to a native collateral token signals growing maturity in the platform's architecture. This is a developing story as the multi-week rollout progresses.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
