JPMorgan Ends Polymarket Account, Keen on IPO Involvement - Reports
Key Points of This Article
- Reuters independently confirmed the account closure through testimonies from insiders.
- Polymarket is in negotiations for funding with a valuation exceeding $20 billion.
Background on Polymarket Account Closure
JPMorgan Chase reportedly terminated its banking relationship with the prediction market operator Polymarket in October 2025, seeking to switch to a new financial institution, according to a report by the Financial Times (FT) on the 15th.
Polymarket has already transferred its account to another financial institution, although FT was unable to identify the name of the new institution. Reuters also reported that it independently confirmed the account closure based on testimonies from knowledgeable insiders on the same evening. JPMorgan declined to comment when approached by FT.
Continued Interest in IPO Involvement
According to reports, JPMorgan has maintained some relationship with Polymarket even after the account closure. The bank aims to be involved in underwriting should the company decide to go public (IPO) in the future. In February, Polymarket's CEO Shane Coplan appeared alongside former NFL player Tom Brady at a private banking event for high-net-worth clients held in Miami.
A spokesperson for Polymarket commented to FT, stating, "We maintain a close and active relationship with JPMorgan through multiple business entities, operational collaborations, and handling of customer fund flows."
Positioning as a Debanking Issue
JPMorgan's account closure is positioned as an example of the "debanking" issue in the United States. In August 2025, the Trump administration signed an executive order directing regulatory agencies to investigate the realities of debanking and apply penalties for violations. In November 2025, JPMorgan also closed accounts for Strike CEO Jack Mallers and ShapeShift executives, facing similar criticisms.
FT reported that the CFTC (Commodity Futures Trading Commission) is investigating Polymarket. A CFTC spokesperson stated in June that they could neither confirm nor deny the existence of an investigation when approached by The Block. Both FT and Reuters did not report that the account closure was a politically motivated move directed by regulatory authorities.
Funding Negotiations and Increasing Headwinds
Polymarket is reportedly negotiating for funding with a valuation exceeding $20 billion, aiming for a $1 billion funding round, as reported by Reuters on August 4. In October 2025, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), agreed to invest up to $2 billion, with a valuation set at $9 billion.
On the other hand, the regulatory environment surrounding prediction markets is becoming increasingly stringent. In July, while competitor Calci's trading volume reached $40 billion, the combined total for Polymarket and Polymarket US was only $12.9 billion. This week, the city of Baltimore filed a lawsuit against Calci and Polymarket regarding sports-related contracts, while a Washington state court ordered Calci to halt most of its services.
-- Price
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