JPMorgan cut Polymarket banking ties in October 2025 over regulatory risk

JPMorgan Chase told prediction-market platform Polymarket in October 2025 to find a new bank, ending a core banking relationship over regulatory concerns, the Financial Times reported Aug. 14.

JPMorgan Chase ended its banking relationship with prediction-market platform Polymarket in October 2025 over regulatory concerns, the Financial Times reported Aug. 14, citing unnamed sources. Polymarket has since moved to an unidentified lender.

"We maintain a close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows," Polymarket told the Financial Times. "Any suggestion otherwise fundamentally mischaracterises our relationship." JPMorgan declined to comment.

The account closure came as Polymarket was rebuilding its US regulatory position. The Commodity Futures Trading Commission fined the platform's operator, Blockratize, $1.4 million in January 2022 for running an unregistered derivatives venue and ordered it to wind down markets that did not comply with federal commodities law. By July 2025, Polymarket had re-entered the US through QCX LLC, which received CFTC designation as a designated contract market; the commission amended that designation in November to permit futures commission merchant intermediation.

The split shows that even a federally regulated prediction market can face uneven treatment from banks, whose internal compliance teams weigh reputational and legal risk beyond what regulators permit. Polymarket is separately in early talks to raise about $1 billion at a valuation above $20 billion, Reuters reported Aug. 4, and JPMorgan has positioned itself for a potential underwriting role should the company pursue an initial public offering.

Regulatory scrutiny persists across federal and state levels

The CFTC opened another investigation into Polymarket, the Financial Times reported in June, citing a person familiar with the matter; neither the regulator nor the company confirmed its focus. State and local pressure has also mounted. Polymarket US and rival Kalshi won preliminary relief July 27 against Minnesota's prediction-market ban, though the federal court stressed the injunction was not a final ruling on the merits. On Aug. 12, the New York City Council launched an inquiry into prediction-market marketing, requesting information from Polymarket, Kalshi, Coinbase and Gemini Titan.

Banking access remains a structural hurdle

The debanking debate has drawn federal attention. The Office of the Comptroller of the Currency said in a December review that it examined nine large national banks, including JPMorgan, and found policies at each that restricted some lawful industries or subjected them to escalated reviews. The bank has kept some ties to Polymarket — it invited Chief Executive Officer Shayne Coplan to speak at a private banking conference in Miami in February — but the account closure shows how compliance risk can override commercial opportunity.

The immediate disruption was resolved with a new banking partner, yet the episode leaves Polymarket's funding and listing plans contingent on a regulatory picture that remains unsettled. The reported $1 billion round and any future IPO depend on the outcome of the CFTC investigation and pending state litigation, with no public registration statement filed to date.

This article is for informational purposes only and does not constitute investment advice.