JPMorgan Chase ended its banking relationship with prediction market platform Polymarket in late 2025 over regulatory concerns, according to a Financial Times report.
JPMorgan cuts banking ties with Polymarket
The report noted that JPMorgan told Polymarket in October 2025 that it would need to find another banking partner. Polymarket has since moved to another lender, though it has not disclosed the new banking partner’s identity.
The decision came as Polymarket was working to reestablish its presence in the US following a regulatory settlement that previously prevented it from serving users in the region.
The Commodity Futures Trading Commission (CFTC) fined Polymarket’s parent company, Blockratize, $1.4 million in a civil penalty in January 2022 for operating an unregistered derivatives exchange. The platform was also required to wind down markets that failed to comply with federal derivatives regulations.
Polymarket has since taken steps to return to the US market. The company acquired QCX and QC Clearing in 2025 and secured a CFTC staff letter providing limited no-action relief for certain reporting and recordkeeping requirements.
The CFTC’s registry currently lists QCX LLC, doing business as Polymarket US, as a designated contract market. The regulator also amended the company’s designation in November to allow futures commission merchant intermediation.
However, the banking split did not appear to end all ties between the two companies. Polymarket reportedly maintains a close relationship with JPMorgan across multiple entities, operational integrations and customer fund flows. JPMorgan is also reportedly interested in potentially underwriting a future Polymarket initial public offering.
In June, Bloomberg reported that the CFTC opened another investigation into the prediction market platform, although the agency is yet to confirm any such probe.
Legal challenges involving prediction markets have also continued in the U.S. Polymarket and Kalshi received preliminary relief against Minnesota’s prediction market ban on July 27, although the court emphasized that the preliminary injunction did not represent a final ruling.
On August 12, the New York City Council announced an inquiry into the marketing of prediction markets and requested information from Polymarket and three other platforms.
The banking decision comes as Polymarket continues to seek investor interest. The predictions market platform reportedly plans to raise roughly $1 billion at a valuation exceeding $20 billion.
Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), invested $1 billion in Polymarket in October 2025 and announced an additional $600 million direct investment in March.
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