JPMorgan Chase has ended its banking relationship with prediction platform Polymarket over regulatory concerns.
According to Financial Times, the bank notified Polymarket in October 2025 that it would need to find an alternative banking provider. Polymarket has since begun working with a new lender, whose identity has not been confirmed.
At the time of the termination, Polymarket was barred from allowing US-based customers to use its platform, following a 2022 enforcement action by the Commodity Futures Trading Commission (CFTC) related to the operation of an unregistered derivatives trading platform. Under the current US administration, the CFTC permitted Polymarket to resume operations in the US in 2025, although the agency is continuing to investigate the company.
Despite ending the direct banking relationship, JPMorgan has maintained other forms of engagement with Polymarket. The bank invited chief executive Shayne Coplan to speak at a private banking client conference in Miami in February 2026. According to a person close to the platform, JPMorgan remains interested in retaining a potential underwriting role should Polymarket pursue a public listing.
Polymarket disputed characterisations of a full separation, stating that it continues to maintain an active relationship with JPMorgan across multiple entities, including operational integrations and the handling of customer fund flows.
Wider industry implications
The episode illustrates the difficulties fast-growing companies in emerging sectors can encounter when securing consistent banking services, particularly where regulatory status remains unsettled. Prediction markets, which allow users to wager on outcomes ranging from sports results to elections and commodity prices, are not regulated as betting operators, a distinction both Polymarket and rival platform Kalshi have used to argue they function as exchanges rather than bookmakers. More than a dozen US states have taken legal action against the two companies over allegations of operating unlicensed sportsbooks.
Additional scrutiny has emerged around the use of insider information on such platforms. In April 2026, a US soldier was charged with placing wagers exceeding USD 400.000 on Polymarket related to a January 2026 military operation in Venezuela in which he had been involved in planning; the individual has pleaded not guilty.
The broader issue of debanking has gained political attention in the US, with prominent technology investors alleging that crypto-related businesses have faced restricted access to banking services. US authorities are currently examining several large banks, including JPMorgan, over fair access practices.
Growth trajectory
Prediction markets have expanded significantly in the US, a trend linked to the legalisation of sports betting following a 2018 Supreme Court ruling. According to data compiled by crypto-analytics platform Dune, prediction platforms have generated more than USD 250 billion in notional trading volume in 2026 to date. Polymarket is reportedly seeking to raise more than USD 1 billion at a valuation of USD 20 billion, more than double the approximately USD 8 billion valuation it achieved in a 2025 fundraising round.
