JPMorgan Chase ended its formal banking relationship with Polymarket in October 2025 over regulatory concerns surrounding prediction markets, according to the Financial Times. The bank told Polymarket to find another banking partner, and the platform has since moved to an unidentified lender.
Despite the account closure, the relationship has not completely severed. Polymarket said it maintains "a close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows." JPMorgan declined to comment. The bank also invited CEO Shayne Coplan to speak at a private client event in Miami in February 2026 and is reportedly interested in competing for an underwriting role if Polymarket pursues an initial public offering. Polymarket is separately in early talks to raise roughly $1 billion at a valuation above $20 billion, though no public IPO filing has been announced.
Polymarket's regulatory history remains central. The platform left the U.S. market after a 2022 CFTC settlement that required Blockratize, the company behind Polymarket, to pay a $1.4 million civil penalty and wind down non-compliant markets. It returned in 2025 after acquiring QCX and QC Clearing and securing a CFTC staff no-action letter on certain reporting and recordkeeping requirements. The CFTC registry now lists QCX LLC, doing business as Polymarket US, as a designated contract market.
Regulatory pressure continues. The CFTC reportedly opened another investigation into Polymarket in June, and several states have taken legal action against Polymarket and Kalshi over claims that their contracts amount to illegal sports betting. On July 27, Polymarket US and Kalshi won preliminary relief against Minnesota's prediction market ban. The New York City Council also announced an inquiry into prediction market marketing on Aug. 12.
Prediction markets are expanding beyond elections and sports. Western Grazers used a Kalshi contract to hedge against higher payroll costs after a California wage exemption for goat herders expired, paying a 10% premium for a possible $500,000 payout. Prediction market trading volume has exceeded $250 billion in notional volume during 2026, based on user-compiled Dune data.
