Polymarket rolls out pUSD migration with CLOB v2 exchange upgrade

Polymarket has rolled out a major upgrade to its exchange, introducing a new trading system and requiring users to migrate their balances to an internal stablecoin, pUSD. The update briefly paused trading while the platform cleared orderbooks and deployed new contracts. Trading resumed after the launch of the upgraded central limit order book [CLOB v2], with APIs coming online before the public interface. Users logging back in are now prompted to convert their balances to pUSD and approve the updated contracts before resuming activity. Exchange upgrade resets trading infrastructure The upgrade represents a structural change rather than a routine update. Polymarket cleared all existing orderbooks before restarting trading on the new system. The move effectively resets liquidity and transitions the platform to a new backend architecture. The CLOB v2 system replaces the previous trading model, with updated APIs handling order flow and execution. This allows the platform to standardize trading conditions and rebuild liquidity under the new framework. To support the transition, Polymarket launched $1m in liquidity rewards, split between an initial two-hour window and a full-day program to incentivize market participation. pUSD introduces a unified settlement layer At the center of the upgrade is pUSD, a platform-native stablecoin that now serves as the base currency for trading. Instead of holding balances in external assets, users must convert funds into pUSD to interact with the exchange. This shift creates a unified settlement layer across the platform. It simplifies trading pairs, reduces fragmentation, and allows Polymarket to manage liquidity more efficiently within its ecosystem. The move also aligns with a broader trend among crypto platforms toward internal settlement systems that offer tighter control over execution and capital flows. Why the shift matters The introduction of pUSD signals a deeper shift in how prediction markets operate. By standardizing balances and settlements, Polymarket can streamline trading and improve capital efficiency. It also reduces reliance on external stablecoins, which can introduce operational and liquidity constraints. At the same time, the move gives the platform greater control over its internal economy, from liquidity distribution to reward mechanisms. Such changes are often aimed at scaling activity while maintaining consistency across markets. Upgrade coincides with unverified data exposure claims The rollout comes as unverified claims of a data exposure incident involving Polymarket circulated online. The claims, which the platform has not confirmed, allege that data was extracted through API vulnerabilities and misconfigurations. There is no evidence linking the upgrade to these claims, and Polymarket has not issued any statement addressing the reports. Still, the timing places additional attention on the platform’s infrastructure as it transitions to a new system. Final Summary Polymarket has launched its CLOB v2 exchange and introduced pUSD, requiring users to migrate balances as part of a broader infrastructure overhaul. The upgrade standardizes settlement and liquidity management, while coinciding with unverified claims about data exposure that remain unconfirmed.