According to BlockBeats, on August 14, the Financial Times reported that JPMorgan Chase terminated its banking services relationship with prediction market platform Polymarket last October due to regulatory concerns, but did not completely sever business ties with the company and is still vying for underwriting opportunities for Polymarket's future IPO.
Sources familiar with the matter revealed that Polymarket was prohibited from providing services to U.S. clients due to a 2022 enforcement action by the U.S. Commodity Futures Trading Commission (CFTC), prompting JPMorgan Chase to request it find a new banking institution. Polymarket has since partnered with a new bank, but the specific name has not been disclosed.
Despite this, JPMorgan Chase continues to do business with Polymarket. In February, the bank invited Polymarket CEO Shayne Coplan to a private banking client conference in Miami, where he co-speaked with former NFL star Tom Brady. Sources familiar with the matter say that JPMorgan Chase hopes to retain the possibility of underwriting a future Polymarket IPO.
Polymarket stated that it maintains a "close and active relationship" with JPMorgan Chase across multiple entities, operational integration, and client cash flow management, and that any statement to the contrary seriously misunderstands the relationship between the two parties.
In recent years, the prediction market has expanded rapidly and has continued to attract the attention of regulators. Since 2026, platforms such as Polymarket and Kalshi have faced legal action in several US states for allegedly operating illegal sports betting. Both companies maintain that they are exchanges that connect buyers and sellers, rather than betting operators.
According to data compiled by Dune users, the nominal trading volume of the prediction market has exceeded $250 billion since 2026. Meanwhile, Polymarket is seeking to raise over $1 billion, targeting a valuation of $20 billion, more than double its valuation of approximately $8 billion in its last funding round in 2025.