JPMorgan debanked Polymarket over regulatory concerns

JPMorgan Chase ended its banking relationship with Polymarket over regulatory concerns. The bank notified Polymarket to find a new bank in October due to issues surrounding its unregistered derivatives trading platform. Although Polymarket has a new lender, their identity is unknown.

Despite the termination, JPMorgan still has connections with Polymarket and invited its CEO to a conference in February. Polymarket maintains it has a “close, active relationship” with JPMorgan across various operations.

The rise of prediction markets has prompted regulatory scrutiny, with several states taking legal action against Polymarket and its competitor Kalshi. The ongoing investigation illustrates the risks banks face when dealing with emerging platforms amidst a rapidly changing regulatory landscape.