Polymarket, a prediction market, had its banking relationship with JPMorgan Chase severed, illustrating regulatory scrutiny’s impact on customary banks’ relationships with cryptocurrency businesses.
According to an October 2025 report from the Financial Times, JPMorgan told Polymarket that it would have to find a different bank, at which point Polymarket moved accounts to a different bank, which was not identified. Neither JPMorgan nor Polymarket has said what raised concerns.
The move comes amid a growing regulatory environment for prediction markets in the United States, having previously been hit with enforcement action from the Commodity Futures Trading Commission in 2022.
As part of the settlement, the company agreed to pay a $1.4 million civil penalty for easing the trading of event-based binary options contracts off-exchange without being registered, and to wind down any markets that do not comply with U.S. commodities law.
Polymarket later moved back into the United States market in 2025 using a regulated model. Nevertheless, JPMorgan’s decision shows that regulatory clarity is not sufficient to address banks’ internal compliance and risk concerns to serve firms in the digital asset markets and prediction markets.
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However, the two companies’ ties have not been completely severed; it has been reported that JPMorgan invited Polymarket CEO Shayne Coplan to give a speech at a private client event in February 2026, and that the bank has positioned itself to provide capital markets services should Polymarket ever go public.
However, then again, there may be a business case for JPMorgan to work with Polymarket that would not work with its current risk framework for ordinary banking clients. The Financial Times report did not name the regulatory hurdles the bank cited.
Prediction market participants buy and sell contracts that pay out based on the outcomes of real events such as political elections and economic trends. Polymarket is a well-known example of a prediction market that uses blockchain technology.
Access to banking has been a continuing challenge for the wider crypto industry, and digital asset firms in particular have argued that uncertainty around how to comply with regulations can make banks reluctant to offer essential services.
The immediate disruption at Polymarket seems to have been resolved with a new banking partner, but JPMorgan’s move shows that even increased federal acceptance of prediction markets may leave them vulnerable to variable treatment in the US banking ecosystem.
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Similarly, JPMorgan can be Polymarket’s bank for things like capital markets, but not necessarily Polymarket’s bank for day-to-day operational stuff.
Currently, the identity of Polymarket’s replacement lender is unknown, as are the specific concerns that caused JPMorgan to terminate its partnership.
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