JPMorgan cuts banking ties with Polymarket over regulatory concerns

JPMorgan Chase quietly ended its banking relationship with Polymarket last year, instructing the prediction market platform to find a new financial home. The move, first reported by the Financial Times, underscores how cautious major banks have become toward platforms operating in regulatory gray zones, even as those platforms grow in prominence and user base.

JPMorgan notified Polymarket in October 2025 that it would be terminating banking services, citing regulatory concerns. Polymarket has since moved to an undisclosed lender, meaning the lights stayed on, but the relationship with one of Wall Street’s most powerful institutions did not.

A complicated regulatory history

To understand why JPMorgan got nervous, it helps to know where Polymarket has been. In 2022, the Commodity Futures Trading Commission fined Polymarket $1.4 million for operating an unregistered derivatives venue and barred the platform from serving U.S. users.

The story shifted in late 2025. As federal regulatory posture softened under the Trump administration, Polymarket re-entered the U.S. market. That timing, a platform with a CFTC enforcement history returning to American users during a period of loosened oversight, was precisely the kind of profile that makes compliance teams at big banks sweat.

The relationship is complicated, not severed

JPMorgan did not exactly ghost Polymarket after cutting ties. The bank invited CEO Shayne Coplan to a private-client conference in February 2026, a gathering that does not typically feature names the bank wants to distance itself from.

More telling still, JPMorgan has signaled openness to underwriting a potential Polymarket IPO. That is a meaningful distinction. Banking services, the day-to-day accounts and payment rails that keep operations running, come with ongoing compliance exposure. Underwriting a public offering is a discrete transaction with defined due diligence and a fee. The bank appears willing to engage with Polymarket as a business opportunity while keeping the regulatory risk of a continuous banking relationship off its books.

Polymarket, for its part, managed the transition without visible disruption. The platform secured alternative banking arrangements, and while the new lender’s identity has not been disclosed, the ability to replace JPMorgan at all signals that Polymarket has options.

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