According to the Wall Street Journal, JPMorgan Chase cut ties with prediction market platform Polymarket last October, citing regulatory concerns. Despite the severed banking relationship, some connections between the two companies remain. A Polymarket spokesperson said the company has "a close, active relationship with JPMorgan across multiple entities," adding that chief executive Shayne Coplan has appeared as a speaker at three of the bank's events over the past year.
In April, JPMorgan offered wealth-management clients the opportunity to participate in Polymarket's Series E fundraising round, which valued the company at $14.5 billion, according to the Wall Street Journal. The development arrives as JPMorgan faces scrutiny over alleged debanking — the practice of improperly closing customer accounts for political reasons. President Donald Trump has ordered regulators to investigate whether banks engaged in such conduct, and last month JPMorgan was among several banks subpoenaed by the Justice Department on the matter.
Donald Trump Jr., the president's son, holds a stake in Polymarket via his investment fund 1789 Capital. Prediction markets broadly continue to draw attention from regulators at both the state and federal levels. The Commodity Futures Trading Commission has a continuing investigation into Polymarket.
Polymarket rival Kalshi was ordered to cease most operations in Washington state earlier this week, and New York's attorney general has sued Kalshi, alleging its platform violates state gambling laws. Legal battles are active across more than a dozen states as authorities weigh whether such platforms fall under gambling regulations. New York City Council Speaker Julie Menin has also opened an investigation into the marketing practices of Polymarket and several rival platforms, with particular concern for tactics directed at young people.
The Council's probe focuses on allegations including undisclosed influencer partnerships and staged trades promoted on counterfeit versions of the Polymarket platform. Polymarket is in early talks to raise about $1 billion at a valuation above $20 billion, according to Bloomberg. The company closed a round at a $15 billion valuation in April and has since opened its U.S. exchange to the public, with annualized revenue rising to more than $1.2 billion.
The platform primarily operates an offshore, cryptocurrency-based exchange where American traders are barred; it launched a regulated app for U.S. customers in December.
Extract — continue reading at the source.
