JPMorgan ended its banking services relationship with prediction market platform Polymarket in October last year because of regulatory concerns, the Financial Times reported, but the bank did not fully cut off business ties and is still trying to position itself for a future role on the company’s IPO.
People familiar with the matter said JPMorgan asked Polymarket to find another banking partner because the platform had been barred from offering services to U.S. customers following a 2022 enforcement action by the U.S. Commodity Futures Trading Commission, or CFTC. Polymarket has now partnered with a new bank, although that bank has not been named.
Business contact between the two companies has continued. In February, JPMorgan invited Polymarket chief executive Shayne Coplan to a private banking client conference in Miami, where he spoke alongside former NFL star Tom Brady. According to people familiar with the matter, JPMorgan wants to preserve the possibility of underwriting a future Polymarket IPO.
Polymarket said it continues to maintain a "close and active relationship" with JPMorgan across multiple entities, operational integrations, and the handling of customer fund flows, adding that any claim to the contrary would seriously misrepresent the nature of the relationship.
Prediction markets have expanded quickly in recent years and have remained under regulatory scrutiny. Since the start of 2026, platforms including Polymarket and Kalshi have faced legal action in multiple U.S. states over allegations that they were operating illegal sports betting businesses. Both companies have argued that they function as exchanges matching buyers and sellers rather than as gambling operators.
According to aggregated data compiled by a Dune user, notional trading volume in prediction markets has exceeded $250 billion since the start of 2026. At the same time, Polymarket is seeking to raise more than $1 billion at a target valuation of $20 billion, more than double the roughly $8 billion valuation from its previous funding round in 2025.