JPMorgan ends banking ties with Polymarket over regulatory concerns

JPMorgan Chase terminated its banking relationship with Polymarket in October 2025, citing regulatory compliance concerns, according to a report.

The decision follows heightened scrutiny of prediction markets and their associated financial infrastructure. Polymarket, a platform for trading event-based contracts, had previously relied on JPMorgan for banking services, including deposits and transaction processing.

Despite the termination, JPMorgan has not ruled out a potential underwriting role if Polymarket pursues a public listing in the future. The bank’s stance suggests a willingness to engage with the platform at a later stage, provided regulatory clarity improves and compliance standards are met.

Polymarket operates in a regulatory gray area, as prediction markets often face challenges under existing financial and gambling laws in various jurisdictions. The platform’s reliance on decentralized finance (DeFi) and cryptocurrency transactions further complicates its compliance landscape.

JPMorgan’s move reflects broader caution among traditional financial institutions toward businesses with elevated regulatory risks. The bank has not publicly commented on the specific reasons for the termination beyond citing compliance concerns.

Polymarket did not immediately respond to requests for comment.