BlockBeats report: On August 17, JPMorgan Chase notified Polymarket in October 2025 to terminate their partnership due to regulatory concerns. Since then, Polymarket has transferred its banking services to another unnamed lending institution. However, the connection between the two parties has not been fully severed; JPMorgan Chase stated it remains interested in securing a role as underwriter if Polymarket launches an IPO in the future. A source familiar with the matter said, “They don’t want to burn all bridges.” Polymarket disputes claims that relations have been widely cut off, emphasizing that it maintains close, active relationships with JPMorgan Chase on “substantial matters including multiple entities, operational integrations, and customer fund flows.”
Prediction markets are experiencing explosive growth, with notional trading volume exceeding $250 billion by 2026. However, this growth has also drawn increased regulatory scrutiny, with more than 12 U.S. states filing lawsuits against Polymarket and Kalshi, alleging they operate as illegal sports betting. Recently, the CFTC invoked emergency powers to order Kalshi to continue operations in New York, intensifying the ongoing conflict between federal and state jurisdiction. Meanwhile, the U.S. government is investigating several major banks for “de-banking” practices, and former President Trump has sued JPMorgan Chase and its CEO Jamie Dimon, accusing them of closing his accounts for political reasons. JPMorgan Chase has adopted a dual stance regarding banking relationships and potential business opportunities, and traditional financial institutions remain cautious as the regulatory boundaries for prediction markets remain unclear.