TLDR
- JPMorgan ended its formal banking relationship with Polymarket in October 2025 amid regulatory concerns surrounding prediction markets.
- Polymarket moved to another unnamed lender but continues to maintain other business links with JPMorgan.
- JPMorgan remains interested in a possible underwriting role if Polymarket moves ahead with a future public listing.
- Polymarket returned to the U.S. market in 2025 after previously being restricted following a 2022 CFTC enforcement action.
- Prediction markets are expanding beyond sports and elections, with firms such as Western Grazers using contracts to hedge policy-related business risks.
JPMorgan ended banking services for Polymarket in late 2025 as regulatory concerns remained around prediction markets. The decision came as Polymarket returned to the U.S. market and the sector attracted more users, investors and business interest.
Polymarket moved to another lender after JPMorgan told the company in October 2025 to find a new banking partner. The parties have not named the lender, while JPMorgan has declined to comment on the decision.
JPMorgan and Polymarket Keep Other Links
JPMorgan ended the formal banking relationship but kept other business contact with Polymarket. The bank invited CEO Shayne Coplan to speak at a private client event in Miami in February 2026.
The bank also wants to compete for an underwriting role if Polymarket pursues an initial public offering. Polymarket says it still works with JPMorgan through other entities, integrations and customer fund flows.
Regulation Still Shapes Prediction Markets
Polymarket left the U.S. market after a 2022 CFTC settlement over an unregistered derivatives venue. The platform later returned in 2025 after federal rules became more supportive under the Trump administration.
Regulatory pressure continues. Several U.S. states have taken legal action against Polymarket and Kalshi over claims that their contracts amount to illegal sports betting. Both firms say they operate exchanges that match traders rather than sportsbooks that take direct bets.
Businesses Test Prediction Markets for Risk
Prediction markets are also moving beyond election and sports contracts. Western Grazers used a Kalshi contract to protect against higher payroll costs after a California wage exemption for goat herders expired.
The company paid a 10% premium for a possible $500,000 payout. The contract depends on whether California approves wage relief by October 1, 2026. Western Grazers used the contract as a hedge against a policy change that could raise labor costs.
Prediction markets have posted more than $250 billion in notional trading volume during 2026, based on user-compiled Dune data. Polymarket is also seeking more than $1 billion at a reported $20 billion valuation.
That growth has placed the sector between two trends. Large banks remain careful about regulatory exposure, while businesses and investors are finding more practical uses for prediction contracts as tools for event-based financial risk management across policy, pricing and operating decisions today.
