The US-based megabank JPMorgan Chase reportedly worried that prediction market regulations would lead it to debank Polymarket in October.
Unnamed sources “familiar with the matter” told the Wall Street Journal late last week that the concerns led the bank to end its “banking relationship” with Polymarket.
Reuters also confirmed the report, quoting more anonymous individuals.
The anonymous sources did not expand on the nature of JPMorgan’s concerns, but the media outlets added that prediction market operators noted that legal battles in over a dozen states remain ongoing.
The states want the power to use their gambling laws to regulate prediction market operators.
The operators say they do not provide gambling services, repeating the federal regulator’s insistence that their contracts are a type of financial product.
JPMorgan, Polymarket Relations Still Good, Says Prediction Market Firm
Despite the reported October debanking, Polymarket says it still has ties with JPMorgan.
Polymarket retains “a close, active relationship with JPMorgan across multiple entities,” a spokesperson for the firm told the Wall Street Journal.
The spokesperson said that Shayne Coplan, the Polymarket CEO, has spoken at three JPMorgan events in the past year.
A Polymarket official gave a similarly worded statement to Reuters, adding that “any suggestion” of a rift between the parties “fundamentally mischaracterizes our relationship.”
JPMorgan has yet to comment on the news reports.
The Financial Times also reported on the matter.
It added that JPMorgan had invited Coplan to speak at a private banking conference in February.
Debanking: Presidential Intervention
In the financial world, debanking has become the source of controversy in recent years. In August 2025, US President Donald Trump issued an executive order that sought to ban the practice.
While the Polymarket-JPMorgan relationship appears to remain amicable, lawyers have previously warned that the executive order could result in repercussions for financial firms suspected of debanking clients.
“Banks should be prepared for potential regulatory scrutiny about alleged debanking of cryptocurrency or digital asset clients,” the legal firm Arnold & Porter wrote last year. “[They should] consider revising policies and procedures to ensure that risk assessments for digital asset clients are conducted on an individualized basis.”
Several banks reportedly debanked crypto firms during the Joe Biden administration, citing high risk and rising regulatory pressure.
In December, a House Financial Services Committee report concluded that several government agencies used “excessive discretion,” “informal guidance,” and “aggressive enforcement actions” to persuade US banks to cut services for at least 30 crypto firms.
Polymarket is crypto-based. The firm uses the Polygon blockchain protocol and the stablecoin USD Coin to power its trading and deposits.
Polymarket Reportedly Mulling IPO Bid
The Financial Times also said sources had told it JPMorgan was considering underwriting a future Polymarket bid to launch an initial public offering.
Also quoting anonymous sources, Bloomberg reported earlier this month that Polymarket has begun talks to raise around $1 billion in an investment round that would value the firm at over $20 billion.
This valuation marks a jump from last year’s $9 billion.
Intercontinental Exchange, the operator of the New York Stock Exchange, last year agreed to invest $2 billion in Polymarket in a deal that valued the firm at $9 billion.
The company reportedly followed up with another funding round in April, which valued Polymarket at $15 billion.
Polymarket has had an eventful summer. Its legal teams continue to battle attorneys general in courtrooms nationwide.
Earlier this month, the firm sealed sports partnership deals with the MLB’s New York Yankees and the ATP Tour, the governing body of men’s pro tennis.
However, legal experts have told CasinoBeats that Polymarket and its rivals should move away from sports contracts or risk further courtroom heat.
One lawyer said that a platform with “80% sports volume” cannot reasonably call itself a prediction market when its operations resemble those of a sportsbook.
The post JPMorgan Ended Polymarket Banking Services in 2025 Due to Regulatory Concerns appeared first on CasinoBeats.
The US-based megabank JPMorgan Chase reportedly worried that prediction market regulations would lead it to debank Polymarket in October. Unnamed sources “familiar with the matter” told the Wall Street Journal late last week that the concerns led the bank to end its “banking relationship” with Polymarket. Reuters also confirmed the report, quoting more anonymous individuals.
The post JPMorgan Ended Polymarket Banking Services in 2025 Due to Regulatory Concerns appeared first on CasinoBeats.