Financial conglomerate JPMorgan Chase terminated its servicing of the cryptocurrency event-betting platform Polymarket in October 2025 due to regulatory issues. This was reported by the Financial Times, citing sources familiar with the situation.
According to the publication, the bank notified Polymarket of the need to find a new financial partner back in the fall of last year. The platform is currently working with another lender, whose name has not been disclosed.
However, there was no complete severance of relations between the companies. JPMorgan, as claimed, is interested in the role of an underwriter (an expert in risk assessment in the financial, insurance, or investment sectors) if Polymarket decides to go public through an IPO. The platform itself stated that it maintains "close and active working relations" with the bank.
Regulatory Pressure is Growing
The bank's decision appears to be part of a broader trend: prediction markets (as cryptocurrency event-betting platforms are called) worldwide are facing increasing scrutiny from regulatory bodies. In the United States, several states are attempting to restrict the activities of such platforms through courts, challenging the legality of contracts based on event outcomes. This concerns both Polymarket and its competitor Kalshi.
The restrictions are not limited to the United States. Individual countries are also imposing direct bans on access to the platform, citing risks associated with gambling rather than financial instruments.
AI Opinion
Analysis shows that JPMorgan's decision fits into a broader pattern of traditional banks being cautious towards such platforms. Back in 2022, the CFTC fined Polymarket $1.4 million for operating without registration, and it is precisely this kind of regulatory legacy that makes large institutional investors keep their distance, even amid visible warming relations between Washington and the crypto industry.
Particular attention should be paid to the fact that the bank's decision coincided with a Congressional investigation into Polymarket and Kalshi on suspicion of insider trading based on official information. Cutting ties with Polymarket could have been a preemptive measure to reduce reputational risks long before regulators' complaints became public. The question arises: will JPMorgan's willingness to participate in a potential Polymarket IPO signal the final legitimization of the prediction market—or is the bank simply hedging a future commission without taking on operational risks today?
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