Shares of Circle Internet Group surged nearly 14% in Thursday's session, closing at $57.04, following news of a significant partnership with prediction market platform Polymarket.
Strategic Partnership Drives Adoption
Polymarket revealed it will shift its primary trading collateral from the bridged version of the USDC stablecoin (USDC.e) to Circle's native USDC on the Polygon blockchain in the coming months. This transition moves the platform's infrastructure directly onto Circle's issuance framework, eliminating the need for a cross-chain token bridge.
Circle CEO Jeremy Allaire highlighted the partnership, stating Polymarket has been a leader in "marrying the speed of information with the speed of markets." Polymarket's CEO Shayne Coplan called the integration "an important step" for the prediction market sector.
Regulatory and Financial Context
The announcement arrives as U.S. regulators intensify their examination of both cryptocurrency operations and prediction markets. In a related development this week, a Massachusetts judge gave rival platform Kalshi 30 days to cease offering sports-event contracts unless it obtains a gaming license.
Circle reported robust financial results for 2024, with revenue reaching $1.68 billion and net income of $156 million. The company positions itself as a foundational provider for digital dollar infrastructure.
Analysts suggest the shift to native USDC could reduce platform exposure to historical vulnerabilities associated with cross-chain bridges, potentially boosting user confidence and transaction activity on Polygon. Investors are now watching to see if this technical migration translates into tangible growth for both entities.