Polymarket is set to enhance its exchange infrastructure in the upcoming weeks with a new collateral token and an upgraded trading system. This initiative aims to provide the platform with improved control over risk and settlement processes, aligning more closely with US regulatory frameworks. The update includes the introduction of version 2 exchange contracts, which will simplify order structure and matching, enhancing overall trading efficiency.
A significant feature of the upgrade is the launch of Polymarket USD, which replaces the previously used bridged USDC token. This new collateral token is fully backed 1:1 by USDC, allowing for greater control over the settlement layer and minimizing dependence on bridged assets. The transition to the new token will be seamless for users, requiring a one-time approval through the platform.
Additionally, the new system will incorporate EIP-1271, facilitating compatibility with smart contract-based wallets and automated trading systems. Following recent regulatory approval from the Commodity Futures Trading Commission, Polymarket is on a path to enhance its market integrity and combat manipulation risks while inviting more brokers and customers to its platform.