Polymarket upgrades Exchange, launches new collateral token

Polymarket has announced a major upgrade to its exchange infrastructure, introducing a new collateral token and overhauling its trading system as part of a broader push to improve efficiency and scalability.

The upgrade, set to roll out over the next few weeks, includes the launch of CTF Exchange V2, an enhanced version of the platform's core trading contract.

The new version optimizes order structures, improves matching efficiency, and adds support for advanced signature standards, including EIP-1271, which enables compatibility with smart contract wallets.

A key component of the update is the introduction of Polymarket USD, a new collateral token that will replace USDC.e. The token is backed 1:1 by USDC and is designed to streamline trading and collateral management within the platform.

While most users will experience a seamless transition through automatic wrapping handled by the frontend, power users and API-based traders will need to manually convert their holdings using a dedicated smart contract function.

Polymarket also announced updates to its developer tooling, including a new CLOB-Client SDK that will support the transition from the current system to the upgraded version.

Builders and traders running bots or integrations will be required to update their software and re-sign orders to comply with the new structure.

As part of the migration, existing order books will be cleared, and the platform will undergo a brief maintenance window.

The company said it will provide advance notice of the exact timing, along with detailed migration guides and API documentation.

The overhaul reflects Polymarket's continued efforts to enhance its trading infrastructure and support a growing user base.

By introducing more efficient systems and improved developer tools, the platform aims to strengthen its position in the decentralized prediction market space.