JPMorgan Chase stopped providing banking services to Polymarket in October 2025, citing regulatory uncertainty. The move affects the federally licensed event exchange as it explores new funding and a potential IPO
JPMorgan Chase discontinued its banking relationship with Polymarket, a federally licensed event contract exchange, in October 2025. The decision, reported by multiple financial news outlets, was attributed to the bank's concerns over increasing regulatory uncertainty in the U.S. prediction market sector. While Polymarket remains federally licensed, the evolving regulatory environment has made some major financial institutions more cautious about their involvement with event contract platforms.
Banking Relationship Ends
According to reporting from the Financial Times, JPMorgan Chase ended its banking services for Polymarket in October 2025. Sources familiar with the matter indicated that the bank's decision was driven by a desire to limit exposure to regulatory risk as federal oversight of event contract exchanges continues to develop. Despite the end of direct banking services, both companies have confirmed that they remain in regular contact regarding other potential business opportunities.
Ongoing Collaboration and IPO Interest
Although JPMorgan Chase no longer provides banking services to Polymarket, the bank is reportedly interested in serving as an underwriter for Polymarket's anticipated initial public offering. Polymarket has stated that its relationship with JPMorgan Chase remains active across multiple operational areas, including customer fund flows and event participation. The company highlighted that its CEO has spoken at several JPMorgan flagship events in the past year, underscoring ongoing collaboration beyond traditional banking.
Polymarket's Growth and Compliance Efforts
Polymarket is reportedly considering a new funding round that could value the company at up to $20 billion, according to Bloomberg sources. The exchange's annualized revenue has been reported to have tripled to $1.2 billion, reflecting significant growth in the event contract market. In parallel, Polymarket has increased its focus on compliance, working with rival exchange Kalshi to flag and address more than 140 potential insider trading cases since the start of the year. These efforts are intended to demonstrate the platform's commitment to regulatory standards as scrutiny intensifies.
Event contract exchanges like Polymarket operate under a different regulatory framework than traditional sportsbooks. In the U.S., these platforms are typically overseen at the federal level, often by the Commodity Futures Trading Commission, rather than by state gaming regulators. This distinction affects how contracts are structured, how compliance is monitored, and what types of events can be offered. As the regulatory landscape continues to evolve, both operators and financial partners must navigate shifting requirements and ongoing uncertainty.
