JPMorgan terminated its banking relationship with prediction market Polymarket in October 2025 over regulatory concerns, according to the Financial Times, and directed the company to secure a new banking partner. Polymarket has since moved its banking to another institution.
The severance did not end all ties between the two firms. JPMorgan invited Polymarket CEO Shayne Coplan to a private banking client conference in February 2026 and is exploring a potential underwriting role should Polymarket pursue an initial public offering. Polymarket said it maintains "a close, active relationship with JPMorgan across multiple entities, operational integrations and customer fund flows."
Polymarket operates as an event prediction platform where users trade contracts on the outcomes of elections, sports, weather and other events. The platform has grown into one of the largest decentralized prediction markets by volume, with significant usage during major political cycles. The regulatory environment around prediction markets has tightened across multiple jurisdictions, with U.S. authorities examining both the legality of certain contract types and the custody arrangements governing customer funds.
JPMorgan's move comes as traditional banking relationships have become critical infrastructure for platforms operating in regulated markets. Loss of banking access can constrain a company's ability to process customer deposits, manage payroll and operate treasury functions. The bank's continued interest in an IPO underwriting role indicates the regulatory concerns were specific to the banking relationship rather than the business model itself.
Polymarket is currently seeking to raise more than $1 billion at a $20 billion valuation, according to reporting from August 4, 2026. That represents a more than doubling of the company's roughly $9 billion valuation as of October 2025, when JPMorgan ended the banking relationship. The fundraising round would position Polymarket as one of the highest-valued crypto-native platforms by valuation.
JPMorgan has expanded its spot Bitcoin and Ethereum trading desks and custody services while avoiding direct operational entanglements with platforms facing unresolved regulatory questions. Major institutions have managed crypto exposure this way over the past two years. Polymarket's need to find new banking infrastructure within months of JPMorgan's notification means the company faced limited options among tier-one banks willing to take the regulatory risk.
The document to watch is any amendment to Polymarket's banking or custody agreement that names its new partner and specifies what regulatory representations the partner required before taking the relationship.
