JPMorgan Chase has reportedly cut its banking ties with Polymarket, adding a new twist to the rapidly evolving story of crypto prediction markets. The change came as Polymarket works to reposition itself in the United States and attract the country's top financial institutions.

According to the Financial Times, JPMorgan informed Polymarket in October 2025 that it needed to find a new banking partner. People familiar with the matter reportedly linked the decision to regulatory concerns surrounding the prediction market platform. Polymarket subsequently moved its banking relationship to another lender, although that bank has not been publicly identified.

Banking access has been a recurring pressure point for crypto-focused companies. Silvergate Bank, long a mainstay of the sector, wound down in 2023, and Signature Bank was seized by regulators that same year, forcing many crypto firms to search for replacement partners among larger institutions. Against that backdrop, losing a core relationship with a major Wall Street bank is a notable operational consideration for a platform that handles customer fund flows, even when broader commercial ties survive.

JPMorgan Asked Polymarket to Find Another Bank

The split, however, was not a complete corporate break. Polymarket stated that it continues to retain an active partnership with JPMorgan, one that spans a variety of entities, operational integrations, and customer fund flows. In practical terms, Polymarket lost its core banking relationship but retained a wider set of commercial ties with the Wall Street bank.

JPMorgan, for its part, has continued to show interest in the company's growth. In February, the bank invited Polymarket CEO Shayne Coplan to a private banking conference in Miami, and it is reportedly interested in potentially helping the company go public at some point. There are no indications of any IPO filing or underwriting agreements.

A Tougher Regulatory Environment for Polymarket

The banking decision came during a period of major regulatory change for Polymarket in the United States, as the platform evolved from a crypto prediction site into a regulated US market operator. In 2022, the Commodity Futures Trading Commission (CFTC) took action against the platform, ordering the company to pay a $1.4 million civil penalty and to close markets that were not registered in line with US derivatives regulations.

Polymarket subsequently acquired QCX and QC Clearing in order to continue offering trading services in the United States. It now operates QCX, a US exchange market designated by the CFTC. That structure leaves only limited regulatory challenges behind, giving the company a more straightforward route into the regulated US derivatives market.

Questions remain for the wider industry, however. Prediction market operators still have to determine whether event contracts fall under state-level bans or federal derivatives law, and some US states have already moved against prediction-market websites, adding another complication for firms in the business. That boundary between state gambling oversight and federal derivatives regulation sits at the center of ongoing legal disputes between event-contract exchanges and several state authorities, making it a defining open question for the sector's reach.

Polymarket Targets $1 Billion at a $20 Billion-Plus Valuation

The JPMorgan development coincides with Polymarket's reported effort to raise roughly $1 billion at a valuation of more than $20 billion. The fundraising would support a further expansion of the platform.

Polymarket's profile rose sharply around the 2024 US presidential election, when its election markets drew heavy trading volume and widespread public attention. The prediction market field has since broadened: CFTC-regulated exchange Kalshi has expanded its event contracts, and brokerages such as Robinhood and Coinbase have rolled out prediction markets for retail customers, adding to the competition Polymarket faces as it courts mainstream financial institutions.

Polymarket has already drawn substantial institutional interest, including from Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. Beyond its crypto-native user base, the company has positioned itself for growth by building infrastructure for regulated US prediction markets.

According to reports, JPMorgan's move underscores the tension between conventional banking rules and the fast-growing prediction market industry. At the same time, the bank's reported openness to a potential IPO role suggests it still sees value in Polymarket's business, even if it no longer serves as the platform's bank.