JPMorgan ended its banking relationship with prediction-market platform Polymarket in October 2025, telling the company to find a new banking partner because of regulatory concerns, according to reporting from the Financial Times. Polymarket has since moved its banking relationship elsewhere.
The decision reflects the broader caution large US banks have shown toward crypto and crypto-adjacent platforms, particularly ones that have drawn direct regulatory scrutiny. Polymarket's parent entity, Blockratize, settled with the Commodity Futures Trading Commission in January 2022, paying a $1.4 million civil penalty and agreeing to wind down markets that didn't comply with federal derivatives law, after the CFTC found the company had been operating an unregistered swaps facility since mid-2020.
A Relationship That Didn't Fully End
What makes the debanking notable is that it hasn't severed JPMorgan's interest in Polymarket entirely. The bank reportedly invited Polymarket CEO Shayne Coplan to a private banking conference in February, and JPMorgan is said to be interested in a potential role underwriting a future Polymarket IPO — a sign the bank is drawing a distinction between providing everyday transactional banking services, which carry direct regulatory exposure, and higher-margin advisory work, which it's still willing to pursue.
Improving Regulatory Standing
Since the 2022 CFTC settlement, Polymarket has taken steps to build a more compliant footprint in US derivatives markets, including acquiring QCX and QC Clearing and securing a CFTC staff letter granting narrow no-action relief on certain reporting and recordkeeping requirements. That progress hasn't been enough, apparently, to keep JPMorgan comfortable extending basic banking services, even as the bank keeps a door open to more lucrative future business with the same company.
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