JP Morgan Cuts Banking Ties with Prediction Market Operator Polymarket

JPMorgan Chase ended its direct banking relationship with Polymarket in October 2025 due to regulatory concerns. The decision was not a complete break, however, as Polymarket maintains relationships with multiple JPMorgan entities and operational integrations.

Polymarket's spokesperson stated that the company has a 'close, active relationship' with JPMorgan across various entities, including material handling of customer fund flows. This suggests that JPMorgan is not entirely severing ties with Polymarket.

The regulatory concerns surrounding prediction markets have led banks to become cautious about providing banking services. Prediction markets allow users to buy and sell contracts tied to the outcome of events, raising questions about whether these contracts are financial derivatives or unlawful gambling products.

Polymarket has faced significant regulatory action in the past, including a $1.4 million penalty from the Commodity Futures Trading Commission in 2022. The company is seeking to establish a regulated U.S. presence, but the industry remains under scrutiny from regulators and lawmakers.