JPMorgan cut Polymarket’s banking ties in October but still wants a role in a potential IPO: FT

JPMorgan Chase ended its banking relationship with prediction market Polymarket in October 2025, telling the company to find a new banking partner, the Financial Times reported on Friday.

Polymarket has since moved its accounts to a different lender, whose identity the FT could not establish. The bank nevertheless wants to remain in contention for an underwriting role if Polymarket eventually pursues an initial public offering, according to the FT. JPMorgan declined to comment to the outlet.

Reuters independently reported the account closure on Friday evening, citing a person familiar with the matter who spoke on condition of anonymity to discuss confidential information.

At the time of the October 2025 account closure, Polymarket’s original platform was not serving U.S. customers following a 2022 CFTC settlement. The agreement required the company to pay a $1.4 million penalty and wind down markets that did not comply with U.S. derivatives law.

Polymarket later re-entered the country through Polymarket US after acquiring QCX LLC, a derivatives exchange, and QC Clearing LLC, a clearinghouse, in a $112 million deal. The CFTC designated QCX as a contract market in July 2025 and amended that designation in November to permit intermediated trading.

The FT also reported that the CFTC has an ongoing investigation into Polymarket. A CFTC spokesperson told The Block in June that it cannot confirm or deny an investigation.

JPMorgan retains some ties to Polymarket

JPMorgan has retained other business with the company, per the report. The bank, along with wishing to remain in contention for a potential IPO underwriting role, invited Polymarket CEO Shayne Coplan to speak at a conference for wealthy private banking clients in Miami in February, alongside former NFL quarterback Tom Brady, the FT reported.

"We maintain a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows," a Polymarket spokesperson told the FT.

"The strength of our relationship is highlighted by our CEO speaking at three of their flagship events in the past year alone. Any suggestion otherwise fundamentally mischaracterizes our relationship," the spokesperson added.

Debanking in Washington

"Debanking" broadly refers to a financial institution’s restricting or ending services for a customer. Crypto executives and political allies have used the phrase “Operation Choke Point 2.0” for alleged government pressure on banks during the Biden administration. President Donald Trump signed an executive order in August 2025 directing regulators to investigate debanking claims and levy fines where appropriate.

JPMorgan has faced similar accusations from crypto executives. The bank closed the accounts of Strike CEO Jack Mallers and a ShapeShift executive in November 2025, telling Mallers only that it was not permitted to say why. Neither the FT nor Reuters reported that JPMorgan’s October 2025 decision to cut Polymarket was politically motivated or directed by regulators. 

JPMorgan CEO Jamie Dimon has said banks are limited in what they can disclose. "I think we should be allowed to tell you," Dimon said on a podcast in January 2025, adding that the bank risks millions of dollars in fines if a crypto client goes wrong.

Prediction markets under scrutiny

Polymarket is in early talks to raise roughly $1 billion at a valuation above $20 billion, Reuters reported on Aug. 4. The company was valued at $9 billion in October 2025 after NYSE parent Intercontinental Exchange agreed to invest up to $2 billion.

Kalshi has pulled ahead on volume in recent months. Polymarket and Polymarket US recorded a combined $12.9 billion in July, compared with Kalshi's $40 billion, according to The Block's data.

Both platforms faced new hurdles this week. Baltimore sued Kalshi and Polymarket on Thursday over sports-related contracts, and a Washington state court ordered Kalshi the same day to halt most of its offerings there.

The New York City Council opened a probe on Wednesday into marketing practices at Polymarket, Kalshi, Coinbase and Gemini Titan. The CFTC has invoked emergency authority to keep Kalshi trading in New York and has sued several states to assert exclusive federal jurisdiction over event contracts.

Coplan is a member of the CFTC's Innovation Advisory Committee, which holds its first meeting Thursday, Aug. 20. Trump is expected to attend a White House session with crypto and prediction market executives the day before.