JPMorgan Chase (NYSE:JPM), the largest bank in the United States and one of the largest globally as well, terminated its primary banking relationship with the prediction-market platform Polymarket in late 2025, according to a report from the Financial Times. The decision stemmed from regulatory concerns, with the bank informing the company in October of that year that it needed to secure an alternative banking partner.
Polymarket has since transitioned to a different lender, though the identity of the new institution has not been publicly disclosed.
Polymarket operates as a decentralized platform where users trade contracts based on the outcomes of real-world events, ranging from political races and sports to economic indicators and current affairs.
The company faced significant regulatory hurdles earlier in its history.
In 2022, it reached a $1.4 million settlement with the Commodity Futures Trading Commission (CFTC) after authorities determined it had operated an unregistered derivatives trading venue.
As a result, the platform was prohibited from serving customers in the United States.
It later reentered the U.S. market in late 2025 following changes in the regulatory environment under the Trump administration that eased certain federal restrictions.
Despite the formal severance of banking services, connections between JPMorgan and Polymarket have not entirely disappeared.
Reports indicate that the bank invited Polymarket’s chief executive, Shayne Coplan, to speak at a private client conference in February 2026.
JPMorgan is also said to be positioning itself for a potential role in underwriting any future initial public offering by the prediction platform.
Polymarket has been exploring a substantial capital raise targeting a valuation around $20 billion.
In response to the reports, a Polymarket spokesperson emphasized that the companies continue to share a close and active relationship.
This includes interactions across multiple entities, operational integrations, and the handling of customer fund flows.
The company further noted that its CEO had spoken at several of JPMorgan’s flagship events over the past year, arguing that characterizations of a complete break misrepresent the ongoing ties.
JPMorgan itself declined to comment on the matter.
The episode highlights broader tensions surrounding prediction markets, an industry that has expanded rapidly into a multi-billion-dollar sector.
These platforms allow participants to wager on event outcomes and are often praised for aggregating public sentiment into tradable insights.
At the same time, they face ongoing scrutiny from regulators at both federal and state levels, with debates centering on whether certain contracts resemble gambling more than financial derivatives.
Sports-related markets in particular have drawn heightened attention amid questions about appropriate oversight.
For emerging fintech and crypto-adjacent businesses, access to traditional banking services remains a critical operational need.
Decisions by major institutions to limit or end relationships—sometimes described as “debanking”—can complicate day-to-day functions even when alternative providers are available.
In this case, the partial continuation of commercial links suggests that JPMorgan is carefully balancing compliance priorities with an interest in remaining connected to a high-growth sector.
As prediction markets mature and pursue greater institutional legitimacy, including potential public listings, their interactions with large banks will likely continue to evolve under the watchful eye of regulators and market participants alike. As first reported by the FT, the latest developments underscore the careful navigation required in an industry still defining its place within the broader financial system.