JPMorgan Quietly Cut Polymarket's Banking Access in October Over Regulatory Concerns, Sources Say
JPMorgan Quietly Cut Polymarket’s Banking Access in October Over Regulatory Concerns, Sources Say #
JPMorgan Chase terminated its banking relationship with Polymarket, the world’s largest decentralized prediction market platform, in October 2025, citing regulatory concerns, according to Reuters and the Financial Times, which first reported the story Friday.
The termination came while Polymarket was operating under a Commodity Futures Trading Commission enforcement action that barred it from accepting U.S. customers. JPMorgan notified Polymarket that it needed to find a new banking partner, according to PYMNTS, which independently confirmed the account. The company has since secured an alternative lender whose identity has not been disclosed.
JPMorgan has maintained other ties to the startup despite ending the direct banking relationship. The bank invited Polymarket CEO Shayne Coplan to speak at three of its flagship events over the past year, according to the company, and has reportedly been exploring a potential underwriting role if Polymarket pursues an initial public offering.
Polymarket disputed the characterization. In a statement issued to the Financial Times and confirmed to Reuters, a company spokesperson said Polymarket maintains “a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows,” and called any suggestion to the contrary a mischaracterization. JPMorgan declined to comment.
The dispute comes as prediction markets face growing regulatory scrutiny following record trading volumes during the 2024 U.S. presidential election. Prediction markets allow participants to wager on the outcomes of future events, from sports results to political contests, and have drawn both institutional interest and state and federal regulatory attention.
That scrutiny has increased in recent weeks. New York’s attorney general sued Polymarket rival Kalshi last month, alleging its platform violates state gambling laws; the CFTC subsequently invoked emergency powers to intervene in that case. The New York City Council has also launched a separate investigation into Polymarket and three other prediction market operators over alleged deceptive marketing practices and concerns that the platforms target minors.
The account-closure dispute coincides with separate scrutiny of JPMorgan’s own practices. The federal government has been examining the bank over alleged fair-access violations in its account-closure practices, and President Trump has sued JPMorgan and CEO Jamie Dimon over what he characterizes as politically motivated account closures.
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