Last October, JPMorgan ended Polymarket’s banking relationship over regulatory concerns but still maintains significant ties to the platform.
JPMorgan terminated Polymarket’s primary banking relationship over regulatory concerns last year, even as the prediction market deepened its ties with other parts of Wall Street.
What’s the Scoop?
- Debanked: JPMorgan “broke with” Polymarket last October over regulatory concerns, forcing the platform to move its primary banking relationship to an undisclosed lender. At the time, Polymarket was still barred from serving U.S. users following its 2022 CFTC settlement and was working toward its regulated return to the country.
- Not Quite a Breakup: JPMorgan has continued doing business with Polymarket in other ways. The platform says it maintains a “close, active relationship” with the bank in multiple manners, including handling significant customer fund flows. They also want to remain in the running to potentially underwrite a future Polymarket IPO.
- Wall Street Split: JPMorgan was backing away at almost the same moment other financial giants were piling in. In October, NYSE parent Intercontinental Exchange invested an initial $1 billion in Polymarket as part of a deal worth up to $2 billion, valuing the company at roughly $8 billion before the investment.
David Christopher
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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
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