JPMorgan Cut Polymarket Banking Ties Over Regulatory Concerns

Regulatory concerns drove JPMorgan Chase to end its banking relationship with prediction market Polymarket last year, the Financial Times reported Friday (Aug. 14), citing unnamed sources.

Polymarket is now working with a new lender after JPMorgan Chase told the company in October 2025 that it needed to find a new bank, according to the report.

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, the report said.

JPMorgan has still maintained some ties with Polymarket, and Polymarket told the FT that it continued to do business with the bank in other ways, per the report.

Polymarket said it maintains “a close, active relationship with JPMorgan” and that “Any suggestion otherwise fundamentally mischaracterizes our relationship.”

Reached by PYMNTS, JPMorgan Chase declined to comment on the report.

Prediction markets have faced legal challenges in several states and cities.

It was reported Wednesday (Aug. 12) that the New York City Council launched an investigation into Polymarket and three other prediction markets, alleging that the companies use deceptive marketing tactics and target minors.

In the case of Polymarket, a letter sent as part of the investigation asked for details about promotional videos that it said appeared to depict fake trades. The report said a Polymarket spokesperson said that the company looks forward to engaging with the city council.

PYMNTS reported in January that prediction markets were breaking into the mainstream and drawing interest from crypto, betting, finance and major institutions, despite regulatory risks.

Polymarket said in November 2025 that it received an approval from the CFTC that positioned the company to return to the U.S. under a fully regulated exchange structure. In April, it was reported that the company approached the CFTC to seek an end to the prohibition keeping U.S. customers from accessing its prediction market platform.

It was reported Aug. 4 that Polymarket is in early discussions with prospective investors to raise about $1 billion at a valuation north of $20 billion.