JPMorgan Chase quietly cut its banking relationship with Polymarket at the end of 2025. According to a Financial Times report, the termination process began in October 2025 when the bank asked the prediction market platform to find an alternative banking partner. The reason provided by the bank was ongoing concerns surrounding regulatory uncertainty. Polymarket has now moved its funds and financial operations to another bank, although the name of the replacement financial institution has not been publicly disclosed.
The decision to close the accounts leaves a sense of irony amid the company’s momentum. The parting with one of the largest banks in the United States comes just as Polymarket is working to restore its foothold and user base in the domestic market.
Entering the US, Losing a Key Partner
Polymarket was completely shut out of the United States market starting in 2022. At the time, the Commodity Futures Trading Commission (CFTC) took enforcement action by banning them from serving local users and imposing a $1.4 million fine. The penalty was handed down because the platform was accused of offering derivative services without officially registering with the relevant authority.
The operating ban finally came to an end in late 2025. A shift in the policy direction of the Trump administration, which eased several federal regulations, gave the platform room to return. Polymarket reopened its services to the US market with a clearer legal footing, but this step forward was overshadowed by JPMorgan’s exit as its primary banking partner.
JPMorgan’s decision to withdraw aligns with a series of legal risks that have not yet been fully cleared from Polymarket’s name. The platform still faces a lawsuit from the city of Baltimore, which accuses it of facilitating illegal gambling operations. Elsewhere, the CFTC is also conducting a special investigation into its competitor, Kalshi. These various cases ensure that the prediction market business climate remains under close regulatory scrutiny.
Why Do the Invitations Keep Coming?
Despite severing formal ties at the daily banking level, JPMorgan has apparently maintained elite connections with Polymarket’s leadership. This was evident when the bank invited Polymarket CEO Shayne Coplan to attend a private client conference held in February 2026.
The motive behind this dual approach centers on calculations regarding stock market business prospects. The same report notes that JPMorgan is still aiming for a strategic role as an underwriter should the prediction platform decide to launch an initial public offering (IPO) in the future.
Washing Hands for a Lottery Ticket
JPMorgan’s dual tactic illustrates the pragmatism of conventional banking when dealing with Web3 entities. They close regular accounts to mitigate short-term compliance risks, but refuse to give up their spot at the front of the line to collect fat commissions from a potential future stock launch.
Reported from CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
