Crypto news

The largest American bank, JPMorgan, has decided to cease direct banking services for the prediction platform Polymarket. This move, initiated back in October 2025, was a direct consequence of growing regulatory pressure on the prediction market sector in the United States. The financial giant, known for its caution regarding controversial crypto assets, chose to minimize risks associated with the legal status of such services.

Despite the break in the primary banking partnership, Polymarket has already found an alternative lender and continues its operational activities without major disruptions. It is important to emphasize that cooperation with JPMorgan has not been fully terminated: the bank still provides the platform with a number of auxiliary services. Moreover, JPMorgan retains interest in the role of underwriter in case Polymarket decides to pursue an initial public offering (IPO). This indicates that the bank sees long-term potential in monetizing the platform but is not ready to bear operational and reputational costs at the current stage.

The situation around Polymarket is a vivid marker of how traditional financial institutions are adapting to new digital markets. On one hand, they strive to participate in profitable areas such as tokenized predictions and derivatives. On the other, they are forced to navigate between innovation and strict regulatory requirements, especially ahead of potential changes in legislation regarding gambling and securities.

My analysis: JPMorgan's refusal to service Polymarket is not a death sentence for the prediction markets industry, but rather a signal of market consolidation. Platforms that can build a transparent legal structure and secure support from specialized banks will gain a competitive advantage. At the same time, JPMorgan's continued interest in Polymarket's IPO suggests that the bank views this sector as strategically important, but only at the maturity stage and after passing regulatory filters.