JPMorgan Ends Polymarket Banking Relationship but Keeps Door Open to Future IPO Role

JPMorgan Chase has ended its banking relationship with prediction-market platform Polymarket but remains willing to participate in a potential initial public offering by the company.

The New York-based bank reportedly cut ties with Polymarket over regulatory concerns, telling the company in October that it would need to find another banking partner.

Polymarket subsequently transferred its accounts to an unidentified lender. Despite the change, the relationship between the two companies has not been completely severed.

Polymarket has not announced plans for an IPO and has not filed to become a publicly traded company. Nevertheless, JPMorgan is reportedly seeking to preserve the possibility of serving as an underwriter if the prediction-market operator eventually decides to list its shares.

“They don’t want to burn all their bridges,” one person close to Polymarket said.

The bank has also retained other connections with Polymarket. In February, Polymarket Chief Executive Shayne Coplan was invited to speak at a JPMorgan conference in Miami aimed at wealthy private-banking clients. Coplan appeared alongside former NFL star Tom Brady.

Polymarket has disputed any characterization of the relationship as having ended entirely.

The company said it continues to maintain “a close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows”. Polymarket added that “Any suggestion otherwise fundamentally mischaracterises our relationship,”.

The banking decision came against the backdrop of significant regulatory scrutiny of prediction markets. Polymarket had previously been prohibited from serving U.S. customers following a 2022 enforcement action by the Commodity Futures Trading Commission. The regulator accused the company of operating an unregistered derivatives trading platform.

Polymarket returned to the U.S. market in late 2025 after federal rules were loosened under the Trump administration. However, the company remains subject to an ongoing CFTC investigation.

The regulatory challenges extend beyond the federal level. More than a dozen U.S. states have taken legal action involving Polymarket and its rival Kalshi, arguing that the platforms are effectively operating unlawful sportsbooks. Both companies reject that characterization, maintaining that they function as exchanges that match participants taking opposing sides rather than as bookmakers themselves.

Polymarket is also facing scrutiny in New York City. The New York City Council is investigating allegations involving deceptive advertising connected with Coinbase, Kalshi, Polymarket and Gemini, with Polymarket expected to be a particular focus of the inquiry.

At the same time, prediction markets have expanded rapidly. User-compiled data from Dune indicates that prediction markets have generated more than $250 billion in notional trading volume so far in 2026.

JPMorgan Chief Executive Jamie Dimon has acknowledged the potential for the bank to enter prediction markets beyond sports and politics this year, although he has characterized such markets as “gambling.” Dimon has also previously described Bitcoin as “fraud” and a “pet rock.”

The dispute over JPMorgan's relationship with Polymarket comes as the broader issue of so-called “debanking” faces increased scrutiny in Washington. The U.S. government is investigating several major banks, including JPMorgan, over questions surrounding fair access to banking services.

JPMorgan and Dimon have also been sued by President Donald Trump over allegations that the bank engaged in politically motivated account closures. JPMorgan has rejected the allegations and said the lawsuit has no merit.

Separately, Polymarket is pursuing significant new financing. The company is reportedly seeking to raise more than $1 billion at a valuation of approximately $20 billion. That figure would be more than twice the roughly $8 billion valuation Polymarket achieved in a 2025 funding round.

The company has also recently reported annualized revenue exceeding $1 billion, underscoring the rapid expansion of prediction markets despite continuing regulatory and legal uncertainty.

For JPMorgan, maintaining connections with Polymarket while ending its formal banking relationship could allow the bank to limit regulatory exposure without completely abandoning a potential opportunity in a rapidly growing financial market. If Polymarket ultimately proceeds with a public listing, JPMorgan's continued engagement could leave the bank positioned to compete for an underwriting mandate. 

By fLEXI tEAM