JPMorgan Chase reportedly ended its banking relationship with Polymarket in late 2025, forcing the prediction-market platform to find another banking partner amid regulatory concerns, according to the Financial Times.
The reported move highlights the growing regulatory pressure surrounding prediction markets as platforms such as Polymarket expand their presence in the U.S. and compete with traditional financial and sports-betting businesses.
According to the report, JPMorgan informed Polymarket in October 2025 that it would need to find another banking provider. Polymarket has since moved to another lender, although the identity of that institution has not been disclosed.
JPMorgan Cut Ties With Polymarket
JPMorgan reportedly ended its formal banking relationship with Polymarket over concerns surrounding the regulatory environment for prediction markets.
The decision came as U.S. regulators and states continued debating how event-based contracts should be classified and regulated.
Prediction markets allow users to buy and sell contracts based on the outcome of future events. Depending on the market, these contracts can cover politics, sports, economics, financial markets and other events.
For platforms operating at scale, access to traditional banking infrastructure remains an important part of supporting customers and moving funds.
Polymarket Found Another Banking Partner
Following JPMorgan's decision, Polymarket reportedly secured a new banking relationship.
The identity of the new lender has not been publicly disclosed, according to the Financial Times report.
The development nevertheless shows that regulatory considerations can influence relationships between traditional financial institutions and rapidly expanding digital-asset or prediction-market businesses.
Polymarket currently operates separate international and U.S. platforms. Its U.S. operation is run by QCX LLC, which operates as a CFTC-regulated designated contract market.
Polymarket Has Faced Regulatory Pressure Before
JPMorgan's reported decision comes after Polymarket previously faced significant action from the U.S. Commodity Futures Trading Commission (CFTC).
In January 2022, the CFTC ordered Polymarket's operator to pay a $1.4 million civil monetary penalty over allegations that it offered event-based binary options contracts without the required registration. The regulator also required the platform to wind down markets that did not comply with U.S. derivatives laws.
The CFTC's official enforcement announcement said the agency considered the contracts to be swaps subject to its jurisdiction.
That regulatory history remains relevant as Polymarket has expanded its operations and returned to the U.S. market.
Polymarket Returns to the U.S.
Polymarket has since established a regulated U.S. operation.
The company's U.S. platform operates separately from the international Polymarket website and is described by Polymarket as a CFTC-regulated Designated Contract Market.
This represents a significant change from the regulatory situation that existed when the CFTC took action against the platform in 2022.
The shift also reflects the broader evolution of prediction markets in the United States, where platforms are increasingly seeking regulatory structures that allow them to offer event contracts to American customers.
JPMorgan Still Has Connections to Prediction Markets
Despite reportedly ending its formal banking relationship with Polymarket, JPMorgan has not completely distanced itself from the prediction-market industry.
The Financial Times reported that JPMorgan invited Polymarket CEO Shayne Coplan to speak at a private client conference in February 2026.
The bank has also reportedly remained interested in potentially participating in a future Polymarket initial public offering.
That suggests the decision to end the banking relationship may have been focused on regulatory and banking considerations rather than a complete rejection of Polymarket as a business.
Prediction Markets Face Growing Regulatory Attention
The dispute surrounding Polymarket comes as prediction markets have become increasingly prominent in the United States.
Platforms are offering contracts linked to elections, sports, economic indicators, financial markets and other real-world events.
Their growth has also created disagreements over whether these contracts should primarily be treated as financial derivatives or gambling products.
The CFTC has historically asserted jurisdiction over qualifying event contracts, while state regulators have argued that some sports-related markets resemble traditional wagering and should fall under state gaming laws.
Banking Access Is Becoming More Important
The JPMorgan-Polymarket relationship also highlights a broader issue for companies operating at the intersection of crypto, fintech and prediction markets.
Even when a platform operates within a regulatory framework, access to traditional banking services can remain critical for payments, settlements, corporate treasury operations and other financial activities.
Banks, meanwhile, must evaluate regulatory, compliance and reputational risks when providing services to companies operating in emerging markets.
As prediction markets continue to grow, these relationships could become increasingly important.
Polymarket's Regulatory Position Has Changed
Polymarket's current U.S. structure is substantially different from the platform that faced CFTC enforcement in 2022.
The company now states that its U.S. operation is a CFTC-regulated Designated Contract Market, while the international platform operates separately.
That regulatory distinction could become increasingly important as the company expands its U.S. business and seeks relationships with major financial institutions.
What JPMorgan's Decision Means for Polymarket
The reported banking split does not appear to have stopped Polymarket's expansion.
The company has continued developing its U.S. presence while operating through a regulated entity.
However, the episode demonstrates that regulatory considerations can still affect relationships between prediction markets and major financial institutions.
For Polymarket, maintaining access to reliable banking infrastructure will remain important as trading activity grows.
For banks, the case illustrates the challenges of working with businesses operating in rapidly evolving regulatory categories.
Prediction Markets Enter a New Phase
The reported JPMorgan decision comes at a time when prediction markets are moving closer to mainstream financial markets.
Polymarket's U.S. expansion, the emergence of competing platforms and growing institutional interest are increasing scrutiny from regulators, banks and policymakers.
The sector's long-term growth could depend on whether regulators establish clearer rules governing event contracts and how those rules interact with existing gambling regulations.
Conclusion
JPMorgan reportedly ended its banking relationship with Polymarket in late 2025, citing regulatory concerns, according to the Financial Times.
Polymarket subsequently found another banking partner, while continuing to expand its U.S. operations through a CFTC-regulated entity.
The platform's history with the CFTC shows why regulatory compliance remains a major consideration for prediction-market companies. The agency previously imposed a $1.4 million penalty on Polymarket's operator in 2022 over unregistered event-based contracts.
As prediction markets continue to expand across the United States, the relationship between banks, regulators and event-contract platforms is likely to remain an important issue for the industry.
