JPMorgan Cut Polymarket's Bank Accounts but Kept Other Business Ties

JPMorgan ended Polymarket's banking relationship in October 2025

JPMorgan Chase stopped providing banking services to the prediction market Polymarket in October 2025, according to the Financial Times. The bank cited concerns about government regulation and told Polymarket to find a new banking partner. Reuters independently confirmed the account closure on 14 August 2026, based on a person familiar with the matter. Polymarket has since moved its accounts to a different lender, whose identity the Financial Times could not establish.

A 2022 CFTC settlement barred Polymarket from U.S. users

Polymarket was barred from serving U.S. customers in 2022 after the Commodity Futures Trading Commission (CFTC) reached a $1.4 million settlement with the platform. The regulator found the company had run an unregistered derivatives trading venue. That order kept the platform closed to American traders for about three years. When JPMorgan cut ties in October 2025, Polymarket was still operating under that enforcement action.

Polymarket returned to the U.S. market in late 2025

Polymarket reentered the U.S. market in late 2025, after federal rules loosened under the Trump administration. The company regained access through a CFTC-designated contract market. The platform remains under regulatory review at both the federal and state levels.

JPMorgan kept other business ties to Polymarket

The account closure did not end all business between the two companies, according to the Financial Times. JPMorgan wants to remain in contention for an underwriting role if Polymarket pursues an initial public offering (IPO). The bank also invited Polymarket CEO Shayne Coplan to speak at a private banking conference in Miami in February 2026. That event featured Coplan alongside former NFL quarterback Tom Brady, according to the report. A Polymarket spokesperson disputed any suggestion that the relationship had weakened.

"We maintain a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows. 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.", 14 August 2026. — Polymarket spokesperson

Prediction markets face state and federal regulatory clashes

Prediction markets let people wager on the outcomes of events, from sports to elections. The sector has grown quickly since the 2024 U.S. presidential election. That growth has drawn scrutiny from state and federal regulators. On 31 July 2026, New York sued Polymarket rival Kalshi and sought at least $36 billion in damages over what it called an illegal gambling operation. The CFTC, which claims federal oversight of prediction markets, has moved to block state enforcement actions. In August 2026, forty-four state attorneys general urged the CFTC to give up its claim over sports-related contracts.

USDC anchors Polymarket's on-chain wagers

Polymarket settles its wagers in USDC, a dollar-pegged stablecoin. USDC traded at about $1.00, with a market capitalization near $71.9 billion at the time of publication (CoinPaprika, 16 August 2026). The stablecoin ranks among the largest by market value.