According to BlockBeats, on August 17th, JPMorgan Chase notified Polymarket in October 2025 that it would be terminating its partnership due to regulatory concerns. Polymarket subsequently transferred its banking operations to another undisclosed lending institution. However, ties between the two companies have not been completely severed. JPMorgan Chase stated that it is interested in pursuing an underwriting role should Polymarket launch an IPO in the future. An insider stated, "They don't want to burn all bridges." Polymarket, however, disputed the claim that the two companies had largely severed ties, emphasizing that it maintains a "close and active relationship" with JPMorgan Chase "across multiple entities, operational integration, and the substantial handling of customer cash flows."
The prediction market is experiencing explosive growth, with nominal trading volume exceeding $250 billion by 2026. However, this growth has also attracted increased regulatory scrutiny, with over 12 US states filing lawsuits against Polymarket and Kalshi, accusing them of illegal sports betting. Recently, the CFTC invoked emergency powers to order Kalshi to continue operating in New York, further escalating the dispute over federal and state jurisdiction. Meanwhile, the US government is conducting "de-banking" investigations into several large banks, with Trump himself suing JPMorgan Chase and CEO Jamie Dimon, accusing them of closing his accounts for political reasons. JPMorgan Chase is exhibiting a dual stance between banking relationships and potential business opportunities, and traditional financial institutions remain cautious as the compliance boundaries of prediction markets remain unclear.