JPMorgan Cut Off Polymarket, But Companies Still Have a Relationship

JPMorgan Chase (NYSE: JPM) reportedly severed its banking relationship with Polymarket last October amid growing regulatory scrutiny on the prediction market operator.

Citing unidentified sources with knowledge of the matter, The Financial Times reports that the largest U.S. bank debanked Polymarket due to regulatory concerns. If the report is accurate, Chase ended its banking relationship with the yes/no exchange just weeks before the Commodity Futures Trading Commission (CFTC) issued an amended order of designation that allowed Polymarket to operate in the U.S. That launch was delayed by months, but Polymarket went live in the U.S. in May, opening its platform to users of iOS (iPhone) operating system.

The Financial Times article didn’t go into detail regarding which regulatory issues prompted Chase to debank Polymarket, but Polymarket was banned from the U.S. in 2022 and in 2024, founder Shayne Coplan’s Manhattan apartment was raided by the FBI. That case was settled, but prediction markets are facing an array of state-level regulatory scrutiny largely revolving around sports event contracts. It’s not clear if those cases were among the reasons JPMorgan ended its banking ties with Polymarket.

The prediction market operator established a relationship with another, unidentified financial institution.

JPMorgan, Polymarket Not Fully ‘Divorced’

While JPMorgan reportedly debanked Polymarket, the two companies aren’t entirely on the outs. Reports indicate the bank invited Coplan to speak at a conference earlier this year attended by wealthy clients.

There’s also speculation that the bank may be eyeing a role in a potential initial public offering (IPO) by the all-or-nothing exchange. To date, there’s some chatter about a Polymarket public share sale, but not from the company itself. Earlier this month, reports surfaced indicating the prediction market is looking to raise new capital at a $20 billion valuation. Polymarket reportedly wrapped up a $1 billion financing round in April, valuing the company at $15 billion.

As for JPMorgan’s intersection with prediction markets, CEO Jamie Dimon earlier this year teased the idea of the bank getting involved in the industry, but he made clear political and sports derivatives won’t be on the menu.

Wall Street Deepening Ties to Polymarket…Sort Of

Albeit in indirect fashion, there are other signs some big names on Wall Street are increasing their exposure to Polymarket. For example, Bill Ackman’s Pershing Square Capital Management on Thursday, Aug. 13, revealed six new holdings, one of which is Intercontinental Exchange (NYSE: ICE).

Following a $600 million investment in Polymarket in April, the owner of the New York Stock Exchange (NYSE) has invested $1.6 billion in the prediction market, making it the largest investor in the privately held company. In discussing the ICE stake, Ackman didn’t directly mention Polymarket, but he likes the setup offered by the financial services stock.

“In ICE we see a classic, simple, predictable, free-cash-flow-generative business that has sold off on concerns we view as unwarranted, a setup that has proven highly profitable for prior Pershing Square investments,” he said in a message to investors.