JPMorgan Chase (NYSE:JPM) reportedly ended its banking relationship with Polymarket in late 2025 over regulatory concerns, highlighting the challenges prediction-market companies face as the industry rapidly expands in the U.S.
Polymarket was asked by JPMorgan in October to seek a new banking partner amid regulatory concerns. The prediction market platform has since secured a new lender, whose identity has not been disclosed, according to a report by the Financial Times.
Despite ending its banking relationship with Polymarket, JPMorgan remains connected to the company, having invited CEO Shayne Coplan to speak at a private banking conference in February and eyeing an underwriting role if Polymarket goes public, the report stated.
Polymarket told the publication that it maintained a close, active relationship with JPMorgan, including across multiple entities, operational integrations and customer fund flows, adding, "Any suggestion otherwise fundamentally mischaracterises our relationship."
JPMorgan and Polymarket did not immediately respond to Benzinga’s request for comments.
Debanking Debate Puts Banks Under Fire
"Debanking" has emerged as a major U.S. political issue after crypto businesses and investors alleged they were denied banking services. The government is investigating major banks, including JPMorgan and Bank of America (NYSE:BAC), over fair-access concerns, while President Donald Trump has sued JPMorgan and CEO Jamie Dimon, accusing them of politically motivated account closures.
JPMorgan initially denied the allegations, arguing the lawsuit lacked sufficient evidence. The bank later acknowledged that it closed accounts linked to Trump and his businesses following the Jan. 6, 2021 Capitol riot. A former JPMorgan executive confirmed that the bank notified Trump-associated entities in February 2021 that their private and commercial banking accounts would be closed.
Prediction Markets Face Banking Hurdles
JPMorgan’s move underscores the challenges emerging companies face in securing banking services, while highlighting major banks’ cautious stance toward the rapidly growing prediction-market industry.
The CFTC fined Polymarket $1.4 million in 2022 for operating an unregistered derivatives platform and ordered it to wind down noncompliant markets. Polymarket later returned to the U.S. through QCX LLC, which received CFTC designation as a designated contract market in July 2025.
Coinbase Global Inc. (NASDAQ:COIN) is facing scrutiny from New York City over its prediction market activities. Earlier this week, City Council Speaker Julie Menin launched an investigation into Coinbase, Polymarket, Kalshi and Gemini Titan, seeking information about their marketing practices.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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