JPMorgan Cut Polymarket’s Banking Ties in October But Still Wants a Role in a Potential IPO

JPMorgan Chase severed its operational banking relationship with Polymarket in October 2025. The prediction-market platform was told to find a new partner. Yet the bank still wants a seat at the table if Polymarket goes public, the Financial Times reported Friday.

Polymarket moved its accounts to another lender. The FT could not identify which one. JPMorgan declined to comment. Reuters confirmed the closure separately, citing a person familiar with the matter, and said regulatory concerns drove the decision.

The operating account was already closed.

Polymarket disputes the narrative. A spokesperson told the FT the company still “maintain[s] a close, active relationship with JPMorgan across multiple entities, operational integrations, and material handling of customer fund flows.” CEO Shayne Coplan spoke at three JPMorgan flagship events over the past year. That included a Miami private-banking conference in February, where he appeared alongside former NFL quarterback Tom Brady. “Any suggestion otherwise fundamentally mischaracterizes our relationship,” the spokesperson said.

The split comes as Polymarket’s valuation surges. Intercontinental Exchange, parent of the New York Stock Exchange, agreed to invest up to $2 billion in October 2025. That deal valued the company at $9 billion. Reuters reported on Aug. 4 that Polymarket is in early talks to raise roughly $1 billion at a valuation above $20 billion.

JPMorgan wants to stay in the running for underwriting work if an IPO materializes, per the FT. Whether Polymarket actually pursues one remains undecided.

The account closure landed the same month as the ICE investment. It came months before a wave of regulatory action against prediction-market platforms this summer. The CFTC has an ongoing investigation into Polymarket. A CFTC spokesperson told The Block in June it cannot confirm or deny specifics. Baltimore sued Polymarket and rival Kalshi on Aug. 13 over sports-related contracts. The New York City Council opened a probe into marketing practices at Polymarket, Kalshi, Coinbase and Gemini Titan on Aug. 12.

Neither the FT nor Reuters described the October decision as politically motivated or directed by regulators. JPMorgan CEO Jamie Dimon said on a podcast in January 2025 that the bank should be allowed to explain why it cuts crypto clients. The bank risks millions of dollars in fines if a client goes wrong, he noted. “I think we should be allowed to tell you,” Dimon said.

The bank closed accounts belonging to Strike CEO Jack Mallers and a ShapeShift executive in November 2025. Mallers was told only that JPMorgan was not permitted to say why.

President Donald Trump signed an executive order in August 2025 directing regulators to investigate debanking claims and levy fines where appropriate.

Polymarket re-entered the U.S. market last year. It paid $112 million to acquire derivatives exchange QCX LLC and clearinghouse QC Clearing LLC. The CFTC designated QCX as a contract market in July 2025 and amended that designation in November to permit intermediated trading. When the October account closure happened, Polymarket’s original platform was not serving U.S. customers. That followed a 2022 CFTC settlement requiring a $1.4 million penalty and the wind-down of non-compliant markets.

Polymarket and Polymarket US recorded combined $12.9 billion in July volume. Kalshi hit $40 billion, according to The Block’s data.

Coplan sits on the CFTC’s Innovation Advisory Committee. Its first meeting is Aug. 20. Trump is expected to attend a White House session with crypto and prediction-market executives on Aug. 19.