JPMorgan ended banking relationship with Polymarket due to regulations

Last year, JPMorgan Chase ended its banking relationship with prediction platform Polymarket. The bank told the company in October 2025 to find a new banking partner, citing concerns about the regulation of prediction markets. Polymarket now works with another bank, although its name has not been disclosed.

In brief:

• JPMorgan ended its banking relationship with Polymarket in October 2025 due to regulatory concerns.
• Despite the end of the banking relationship, the two companies still cooperate in other areas.
• Polymarket wants to raise more than $1 billion at a valuation of $20 billion.

Banking relationship over, but cooperation continues

Although JPMorgan stopped providing banking services to Polymarket, ties between the two parties remain in other areas. In February, the bank invited Polymarket CEO Shayne Coplan to a closed-door conference for private banking clients. In addition, JPMorgan sees a possible role for itself as underwriter if Polymarket ever goes public.

Polymarket itself says it maintains an active relationship with JPMorgan through multiple entities, including operational connections and user fund flows. The banking split thus appears to be more of a formal compliance step than the definitive end of the collaboration, the Financial Times reports.

Regulatory issues as background

The timing of the decision coincides with broader vigilance in the financial sector around prediction markets. In 2022, Polymarket already faced an enforcement action from the US Commodity Futures Trading Commission because the platform allowed derivatives to be traded without registration. After that, the platform was no longer accessible to US users.

This historical legal background plays a role in how traditional banks assess the platform, even though the political and regulatory climate in the US has since changed under Donald Trump.

Major funding round on the horizon

Meanwhile, Polymarket has ambitious funding plans. The company wants to raise more than $1 billion at a valuation of $20 billion. That is more than double the valuation of approximately $8 billion the platform had earlier in 2025. Whether and when that round will be completed has not yet been announced.