Updated
Updated · Financial Times · Aug 14
JPMorgan Cut Polymarket Banking Ties in 2025 Over Regulatory Concerns
Updated
Updated · Financial Times · Aug 14

JPMorgan Cut Polymarket Banking Ties in 2025 Over Regulatory Concerns

3 articles · Updated · Financial Times · Aug 14

Summary

  • October 2025, JPMorgan told Polymarket to find a new bank, ending the core banking relationship even though the prediction-market platform has since secured another lender.
  • The move came after Polymarket had been barred from serving US customers under a 2022 CFTC action, and despite its return to the US last year it still faces an ongoing federal investigation.
  • JPMorgan has not fully severed ties: it invited chief executive Shayne Coplan to a Miami client conference in February and is said to want to preserve a shot at any future IPO underwriting role.
  • The episode highlights broader bank caution toward prediction markets, a sector that has drawn lawsuits from more than a dozen states and logged over $250 billion in notional trading volume in 2026.

Insights

Why would a major bank publicly cut ties with a prediction platform while secretly maintaining backend operational flows?
As regulators deploy AI to hunt insider trading on prediction markets, will traditional finance ultimately absorb or destroy these platforms?
How can a forecasting platform secure a massive $20 billion valuation when its core legality remains heavily contested across multiple states?