TL;DR:
JPMorgan Chase severed its banking relationship with Polymarket in October 2025 over regulatory concerns, according to a report by the Financial Times citing sources familiar with the matter. The bank notified the prediction markets platform that it needed to find a new financial services provider. Polymarket already operates with another lender, though its identity was not disclosed.
The case carries legal precedents that weigh on the platform. In 2022, the Commodity Futures Trading Commission (CFTC) sanctioned Polymarket with a $1.4 million settlement for operating an unregistered derivatives market, which barred it from serving U.S. users. The platform returned to the domestic market in late 2025, once the Trump administration loosened sector regulations at the federal level.
Despite the formal interruption of the banking relationship, JPMorgan is said to have maintained other ties with Polymarket. The bank invited Shayne Coplan, CEO of Polymarket, to present at a private client conference in February 2026, and remains interested in securing a role as underwriter should the platform decide to go public. The company itself indicated that it continues to have a “close and active relationship” with the financial institution.
The regulatory landscape surrounding prediction markets has grown more complex over the past year. More than a dozen U.S. states have launched legal actions against Polymarket, Kalshi, or both platforms over contracts tied to sporting events. Authorities in several countries have also blocked or restricted access to Polymarket, making clear the tension between this type of decentralized platform and traditional regulatory frameworks.
