Key Highlights

  • JPMorgan Chase terminated its banking relationship with prediction platform Polymarket in October over regulatory concerns.
  • Polymarket is seeking to raise more than $1 billion at a valuation of $20 billion, more than double its 2025 valuation.
  • The Commodity Futures Trading Commission has an ongoing investigation into Polymarket despite allowing it to resume US operations last year.
  • Prediction markets have generated more than $250 billion in notional trading Volume so far in 2026.

Bank Cited Regulatory Concerns in Ending Relationship

JPMorgan Chase terminated its banking relationship with prediction platform Polymarket last October over regulatory concerns, according to people familiar with the matter, though the company has since secured a new banking partner. At the time, Polymarket was barred from allowing US customers on its platform following a 2022 enforcement action by the Commodity Futures Trading Commission for operating an unregistered Derivatives trading platform. The CFTC allowed Polymarket to resume US operations last year, though the agency maintains an ongoing investigation into the company.

Bank Has Maintained Selective Ties Despite Ending Core Relationship

Despite ending its primary banking relationship with Polymarket, JPMorgan has maintained some connections with the company, including inviting chief executive Shayne Coplan to speak at a private banking client conference in Miami in February. The bank is reportedly interested in remaining positioned for a potential Underwriting role should Polymarket pursue a public listing. Polymarket said it continues to maintain "a close, active relationship with JPMorgan across multiple entities, operational integrations and material handling of customer fund flows."

Prediction Markets Face Broader Regulatory Scrutiny

The move highlights ongoing challenges facing fast-growing companies in newer financial industries when it comes to securing banking services, alongside broader scrutiny of prediction markets from state and federal regulators. More than a dozen US states have taken legal action against Polymarket and rival platform Kalshi over allegations they are operating unlawful sportsbooks, claims the companies dispute. Prediction markets have generated more than $250 billion in notional trading volume so far in 2026, according to data from crypto analytics platform Dune. Polymarket is currently seeking to raise more than $1 billion at a $20 billion valuation, more than double its valuation from a 2025 fundraising round.