JPMorgan Chase & Co. terminated its banking relationship with Polymarket last year over regulatory concerns, according to a report from the Financial Times. The bank notified the prediction-market platform that it needed to find a new bank in October 2025, citing people familiar with the matter who were not identified by name. As reported by the Financial Times, Polymarket is now working with a new lender, though the identity of the replacement bank was not disclosed in the report. The Bloomberg report confirms this development, emphasizing that JPMorgan's decision reflects broader regulatory concerns surrounding prediction markets.
Despite ending the banking relationship, JPMorgan retains other ties to Polymarket as it looks to leave the door open for an underwriting role should the prediction-market platform attempt to go public, according to the Financial Times report. A person familiar with the matter cited by the Financial Times explained this strategic approach, suggesting JPMorgan wants to maintain some level of relationship while avoiding direct banking exposure. The bank has invited CEO Shayne Coplan to speak at a private banking conference in February and continues to eye an underwriting role if Polymarket goes public, as reported by the Financial Times. Over the past year, Polymarket CEO Shayne Coplan has attended three events hosted by JPMorgan Chase, and earlier this year, a major Polymarket investor assisted in facilitating introductions to major banks such as Citigroup and Fifth Third, as reported by BlockBeats. The Bloomberg report reinforces this position, citing sources familiar with the matter who confirm the bank's selective approach to maintaining certain business relationships.
A spokesperson for Polymarket responded to the banking relationship termination, stating that the company maintains a close, active relationship with JPMorgan Chase through multiple entities, operational integrations, and material handling customer fund flows. As reported by the Financial Times, the Polymarket spokesperson emphasized that any suggestion otherwise fundamentally mischaracterizes their relationship. The BlockBeats report confirms this position, noting that Polymarket currently maintains a "close and active relationship" with JPMorgan Chase despite the banking relationship termination. Polymarket also confirmed to the Financial Times that it continued to do business with JPMorgan in other ways despite the banking relationship termination.
Polymarket is now actively seeking a $20 billion valuation as it continues to cultivate relationships with major financial institutions, according to the Financial Times. This ambitious valuation target reflects the platform's growing confidence in its market position and regulatory compliance following its return to the U.S. market. The Financial Times reports that JPMorgan's continued engagement with Polymarket demonstrates the bank's recognition of the platform's potential value, even as it maintains a cautious approach to direct banking exposure.
The banking relationship termination reflects broader regulatory concerns surrounding prediction markets, which have grown into a multi-billion dollar industry by offering financial contracts tied to various events including celebrity news and geopolitical developments. According to the Financial Times report, wagers on sports dominate prediction market trades and stand at the center of a wide-ranging fight over how to regulate the industry. The regulatory environment has created challenges for traditional financial institutions working with prediction market platforms, with JPMorgan's decision highlighting the complex relationship between established banks and emerging financial technology companies. At the time JPMorgan made the change, Polymarket was operating under an enforcement action imposed by the Commodity Futures Trading Commission (CFTC) that prevented the company from allowing U.S. customers to use its platform, as reported by the Financial Times. The CFTC fined Polymarket $1.4 million in 2022 for operating an unregistered derivatives platform and ordered it to wind down noncompliant markets, before Polymarket later returned to the U.S. through QCX LLC, which received CFTC designation as a designated contract market in July 2025.
