JPMorgan Ends Banking Relationship With Polymarket, Yet Eyes IPO Role

JPMorgan Chase told prediction market platform Polymarket back in October 2025 to find a new bank, citing regulatory concerns. Polymarket has since shifted its accounts to another lender, though that bank’s identity hasn’t been made public. Even after cutting the account relationship, JPMorgan is reportedly still interested in playing an underwriting role if Polymarket eventually goes public. The bank declined to comment on the matter.

At the time of the closure, Polymarket’s main platform wasn’t serving US customers due to a 2022 CFTC settlement that included a 1.4 million dollar fine. The company later reentered the US market by acquiring derivatives exchange QCX LLC and clearinghouse QC Clearing LLC in a 112 million dollar deal. Reports also suggest the CFTC has an ongoing investigation into Polymarket, though the agency hasn’t confirmed this publicly.

The Relationship Isn’t Fully Over

Despite the account closure, JPMorgan hasn’t stepped away from Polymarket entirely. The bank invited CEO Shayne Coplan to speak at a private banking event in Miami earlier this year, alongside former NFL star Tom Brady. A Polymarket spokesperson described the relationship with JPMorgan as close and active, spanning multiple business areas including how customer funds move.

Part of a Bigger Debanking Debate

This situation feeds into a broader conversation around “debanking,” where financial institutions restrict or cut off services to certain customers. Crypto industry figures have used terms like “Operation Choke Point 2.0” to describe alleged behind-the-scenes government pressure on banks. An executive order signed last year directed regulators to investigate such complaints. JPMorgan has faced similar accusations before after closing accounts tied to other crypto executives.

Prediction Markets Growing Fast Despite Pressure

The news comes as Polymarket is reportedly in talks to raise nearly 1 billion dollars at a valuation above 20 billion dollars, up sharply from 9 billion dollars last year. Rival platform Kalshi, meanwhile, has pulled ahead in trading volume by a wide margin. Both companies are also facing fresh regulatory challenges, including lawsuits and local investigations into their marketing practices.