What to know:
- JPMorgan Chase ended its banking relationship with Polymarket over regulatory concerns surrounding prediction markets, according to the Financial Times.
- The bank reportedly told Polymarket in October 2025 to find a new banking partner, with the platform now working with an undisclosed lender.
- Despite the banking split, JPMorgan and Polymarket maintain other business ties, including potential cooperation if Polymarket pursues an IPO.
JPMorgan Chase has severed ties with Polymarket, a predictive market exchange company, on regulatory grounds, as per a report by the Financial Times. The move comes in light of the increasing scrutiny of prediction market companies, amid growing regulatory interest in contracts relating to sporting and other events in the US and other nations.
It is being reported that JPMorgan Chase let Polymarket know in October 2025 that the company had to look out for a new banking firm. As per people knowledgeable about the matter, the bank decided to do so due to some regulatory concerns surrounding prediction markets.
Polymarket has now shifted its banking operations to a new bank, though the name of this new banking institution has yet to be revealed.
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JPMorgan Remains Linked to Polymarket
Although it has ended its banking link with Polymarket, JPMorgan has not severed its links with Polymarket entirely. Sources suggest that the bank is keen on collaborating with Polymarket should it decide to go for an IPO in the future.
Polymarket has also made clear that its wider ties with JPMorgan are still ongoing. In this regard, it is said that the company’s link with the bank is that of a “close, active relationship.” This would mean that the termination of the banking deal does not mean an end to their other business relationships.
Prediction Markets Face Growing Regulatory Pressure
The news emerges amid rising regulatory scrutiny around prediction markets within the United States and abroad. Although platforms like Polymarket and Kalshi have grown in popularity, they have also generated some legal and regulatory issues surrounding their event-related contracts.
At least a dozen US states have filed legal cases against either or both of these prediction market platforms over event-based contracts associated with sporting events. Regulatory and governmental agencies in other nations have also sought to limit or ban Polymarket.
The latest example highlights how regulatory uncertainties can impact the financial relationships of a crypto and blockchain firm despite the fact that the organization is growing in terms of offering new services to customers.
In the case of Polymarket, accessing banking services in spite of facing certain regulations may be one of the crucial issues that will persist with the growing presence of the platform.
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