Why JPMorgan Cut Ties With Polymarket Despite Its Explosive Growth

JPMorgan Chase terminated its banking relationship with Polymarket last year over regulatory concerns. This now only adds to the challenges facing the prediction market giant as scrutiny of the industry intensifies.

JPMorgan ended the relationship in October of 2025, according to a source familiar with the matter. However, Polymarket pushed back against suggestions that its wider relationship with the bank had broken down.

A Polymarket spokesperson said the company still has an active relationship with JPMorgan across several entities, including operational integrations and the handling of customer fund flows.

The banking setback comes at an unusual time for Polymarket. Investor interest in the company has surged despite its regulatory challenges. Polymarket entered early discussions this month to raise roughly $1 billion at a valuation exceeding $20 billion.

The company reportedly raised $1 billion at a $15 billion valuation in April, including a $600 million investment from New York Stock Exchange parent Intercontinental Exchange. In June Polymarket's annualized revenue also surpassed $1 billion.

That growth has made Polymarket one of the most valuable companies in the prediction market sector, but regulators are paying close attention.

New York City Council Speaker Julie Menin opened an investigation into Polymarket and other prediction platforms on Aug. 11 over allegations of predatory and misleading marketing. The Council asked Polymarket to provide information about its use of influencers, social media and marketing practices within 14 business days. Polymarket said it intends to engage with the Council.

Polymarket is simultaneously fighting a battle over whether federally regulated prediction markets can be restricted under state gambling laws.

The company scored a victory in Minnesota in July when a federal judge temporarily blocked the state's new prediction-market ban. Polymarket, rival Kalshi and the Commodity Futures Trading Commission argued that event contracts fall under federal CFTC jurisdiction rather than individual state gambling regimes.

Market integrity is another concern. In May, the CFTC accused a Google employee of using confidential information to make approximately $1.2 million trading Google-related contracts on Polymarket.

Polymarket's impressive growth therefore leaves it in an unusual position: institutional investors view prediction markets as a major new financial category, while banks, lawmakers and regulators are still deciding exactly how the industry should be treated.