JPMorgan Chase Stated It Will Bid to Serve as IPO Underwriter If Polymarket Goes Public

JPMorgan Chase notified Polymarket in October 2025 that it would terminate its partnership over regulatory concerns. Polymarket has since shifted its banking operations to another unnamed lender. However, the two parties have not completely severed ties; JPMorgan stated it intends to pursue an underwriting role if Polymarket launches an initial public offering (IPO) in the future. A source familiar with the matter said, "They don't want to burn all bridges." Polymarket, in turn, pushed back against claims that the two sides have largely cut ties, stressing that it maintains "close, active relationships with JPMorgan across multiple entities, operational integrations, and the substantial handling of customer cash flows." Prediction markets are seeing explosive growth, with their nominal transaction volume exceeding $250 billion in 2026. This growth has also drawn heightened regulatory scrutiny, with more than 12 U.S. states filing lawsuits against Polymarket and Kalshi, accusing them of operating illegal sports betting. Recently, the U.S. Commodity Futures Trading Commission (CFTC) invoked emergency powers to order Kalshi to keep operating in New York, as a jurisdictional dispute between federal and state authorities continues to escalate. Meanwhile, the U.S. government is conducting "debanking" investigations into multiple large banks; former President Donald Trump has himself sued JPMorgan Chase and its CEO Jamie Dimon, alleging they closed his accounts for political reasons. JPMorgan’s dual stance—balancing existing banking relationships with potential business opportunities—reflects the caution traditional financial institutions are exercising as the regulatory boundaries for prediction markets remain unclear.