JPMorgan Cut Banking Ties With Polymarket Over Regulatory Concerns

According to fresh reports from the Financial Times, Wall Street giant JPMorgan Chase ended its banking relationship with the prediction market platform Polymarket last year.

This move comes as prediction market platforms continue to face increased scrutiny from state authorities across the US. As part of JPMorgan’s decision, Polymarket has shifted to a different lender, but the banking partner details are not yet revealed.

Polymarket moves to a new banking partner as JPMorgan ends alliance

The latest Financial Times report revealed that JPMorgan has officially ended its partnership with Polymarket. The US financial platform has reportedly ended providing banking services to Polymarket.

According to the report, the bank had asked the prediction market platform to shift to another partner earlier in October 2025. The bank took this decision because of the growing regulatory concerns surrounding prediction market platforms like Polymarket and Kalshi. However, neither JPMorgan nor Polymarket has officially revealed or commented on the matter.

Prediction market faces growing regulatory concerns

It is worth noting that JPMorgan’s decision to end the banking partnership with Polymarket comes amid growing regulatory concerns. Since 2022, Polymarket has been facing regulatory pressure in the US, when the CFTC fined the platform $1.4 million for allegedly operating unregistered derivatives trading services. The regulator also forced the prediction market platform to stop offering these services in the country.

But in 2025, Polymarket returned to the US market as the regulatory environment became more favorable under the Trump administration. However, the regulatory pressures persisted as there were confusions about how prediction market platforms should be governed. While Polymarket continues to expand its presence in the US, more state authorities are suing the platform for alleged non-compliance.

Not only Polymarket, but other prominent prediction market platforms like Kalshi are also under pressure. Nevada, New Jersey, Maryland, Illinois, Ohio, Montana, and other US states have already taken legal actions against these platforms, alleging that they offer illegal gambling services. While a Washington court recently sided with the state authorities, Minnesota ruled in favour of the platforms, as reported by CoinCodex.

JPMorgan continues to keep ties with Polymarket

Despite JPMorgan’s latest move, the bank continues to have other ties with the prediction market platform. Reportedly, JPMorgan invited Polymarket CEO Shayne Coplan to speak at a private client event in February 2026. Also, the bank has shown interest in potentially working as an underwriter if the prediction market platform goes public in the future.

This suggests that the bank’s decision to end the banking alliance with Polymarket is mainly based on regulatory concerns. The move doesn’t mean that the bank is preparing for a full exit from the prediction market platform. Further confirming this, Polymarket stated that it will still be connected to the bank, maintaining a “close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows.” The platform added, “Any suggestion otherwise fundamentally mischaracterises our relationship.”