JPMorgan Chase cut ties with Polymarket last year over regulatory concerns, and is now still seeking the opportunity to underwrite its IPO.

According to the Financial Times, JPMorgan Chase terminated its banking services relationship with prediction market platform Polymarket last October over regulatory concerns, but has not fully cut off business ties with the firm and is currently pursuing the opportunity to underwrite Polymarket’s future initial public offering (IPO). Sources familiar with the matter said Polymarket was barred from serving U.S. customers in 2022 due to an enforcement action by the U.S. Commodity Futures Trading Commission (CFTC), prompting JPMorgan to request the firm find a new banking partner. Polymarket has since partnered with a new bank, whose name has not been disclosed. Even so, JPMorgan continues to maintain business dealings with Polymarket. In February this year, the bank also invited Polymarket CEO Shayne Coplan to attend a private banking client conference in Miami, where he delivered a speech alongside former NFL star Tom Brady. Sources said JPMorgan aims to retain the possibility of underwriting Polymarket’s future IPO. Polymarket stated that it still maintains a "close, active relationship" with JPMorgan across multiple entities, operational integrations, and client fund processing, adding that any claims to the contrary are a serious misrepresentation of their ties. In recent years, prediction markets have expanded rapidly and drawn ongoing regulatory scrutiny. Since 2026, platforms including Polymarket and Kalshi have faced legal actions from multiple U.S. states over allegations of operating illegal sports betting, though both companies argue they function as exchanges that match buyers and sellers rather than betting operators. According to aggregated data from Dune users, the nominal trading volume of prediction markets has exceeded $250 billion since 2026. Meanwhile, Polymarket is seeking to raise over $1 billion in funding, targeting a $20 billion valuation—more than double the roughly $8 billion valuation from its previous funding round in 2025.