JPMorgan Debanks Polymarket Over Regulatory Concerns

JPMorgan Chase terminated its banking relationship with Polymarket in October 2025 over regulatory concerns, according to a Financial Times report. The bank notified the prediction-market platform that it needed to find a new lender, and Polymarket now works with an unidentified bank. Despite the severance, JPMorgan maintains other ties with Polymarket and is reportedly interested in an underwriting role should the platform go public. Polymarket stated it retains a 'close, active relationship' with JPMorgan. The termination occurred while Polymarket was under a CFTC enforcement action that barred U.S. customers, though the platform later received CFTC approval to return to the U.S. under a regulated exchange structure. Prediction markets face increasing regulatory scrutiny, with over a dozen U.S. states taking legal action against Polymarket and Kalshi over sports contracts, and the United States — New York City launching an investigation into Polymarket's marketing practices.