JPMorgan Quietly Cut Banking Ties With Polymarket Since Last October; US DOJ Probes Crypto Client Debanking

According to ArzDigital, citing the Financial Times, JPMorgan cut its banking relationship with prediction market platform Polymarket last October, a move now referred to as debanking that has only recently come to light. The decision followed the CFTC's earlier enforcement action against Polymarket for operating without a license. Polymarket, however, still maintains ties to some of the bank's units for operations and client fund flow management, and JPMorgan could in the future act as an underwriter for the platform's IPO, at a possible valuation of $15 billion.

The disclosure comes as the US Department of Justice investigates nine major banks, including JPMorgan, over allegations they unfairly closed customer accounts in sectors such as crypto for political or regulatory reasons.