Crypto-focussed venture firm Paradigm is expanding its presence into the prediction markets arena. It is looking to offer the service through a new trading terminal aiming to cater to professional traders and market makers.
The project, according to people familiar with the matter, is being led by partner Arjun Balaji, who has worked on the effort since late 2025. The move adds to growing interest in prediction markets as firms across finance and crypto look for new ways to serve active trading demand.
At the same time, the initiative also comes as Paradigm deepens ties to a market segment that has drawn strong investor interest in recent months.
The firm already backs Kalshi, one of the best-known names in the sector, while also studying new products linked to market data and bundled contracts.
Paradigm builds pro trading tools
Paradigm is developing a prediction markets trading terminal for professional users, according to sources cited in the report. The product is expected to serve market makers and advanced traders rather than casual retail participants.
That focus places the effort closer to institutional-grade infrastructure than a standard consumer platform. The project has reportedly been in motion since late 2025.
While full product details remain private, the reported direction shows that Paradigm wants a deeper role in how prediction market participants trade, price, and monitor contracts.
The terminal project arrives as prediction markets draw more attention from traditional finance. These venues allow traders to place positions on outcomes tied to elections, sports, economic events, and digital asset prices.
Paradigm has also considered building an internal market-making desk for the same space. That would give the firm another route into trading activity beyond software and data products.
No final decision on that plan has been confirmed, but the discussion itself shows the breadth of the firm’s work around this segment.
Kalshi drives Paradigm push
Paradigm has been one of Kalshi’s most visible backers. The venture firm took part in three successive Kalshi funding rounds during 2025 and led the December raise that valued the company at $11 billion.
More recently, Kalshi raised at least $1 billion in a new financing round that lifted its valuation to $22 billion, as Coin Headlines reported.
That link matters because Paradigm’s latest project is not expected to compete directly with Kalshi. The terminal under development is not a rival to Kalshi’s platform.
That suggests Paradigm is trying to build tools that can sit around the growing prediction market sector rather than replace one of its own major portfolio companies.
Paradigm’s role in Kalshi also runs through its leadership. Matt Huang, the firm’s cofounder and managing partner, sits on Kalshi’s board of directors.
That board seat gives Paradigm a direct connection to one of the sector’s most valuable businesses as the firm explores related infrastructure and data products.
The wider market has also grown more crowded. Polymarket, Kalshi’s closest rival in public attention, has seen strong growth and has reportedly explored a new fundraising round at about a $20 billion valuation.
Meanwhile, a new venture firm focused only on prediction markets has emerged with backing from the chief executives of both major platforms. That setting has increased the pace of activity around tools, data, and market structure.
Data products and index ideas broaden the strategy
Paradigm is not only working on a trading terminal. The firm is also studying prediction market indices with help from researchers.
The idea would group several contracts into one tradable package, creating a product that functions more like an index than a single-event position.
Such a structure could give traders a way to gain exposure to a broader theme without choosing one stand-alone contract. It could also create new demand from users who want a basket approach rather than direct bets on one outcome.
The firm has not announced a public launch for this concept, but the work shows that the strategy extends beyond one interface.
Moreover, Paradigm has started collecting prediction market data into a public dashboard. That step fits with growing demand for transparent market information as more traders, funds, and researchers follow these venues.
Public dashboards can help users compare activity, watch pricing, and track changes across contracts and platforms.
Taken together, the terminal, index research, and dashboard work point to a wider build-out across trading infrastructure.
Rather than focusing on only one product line, Paradigm appears to be exploring several ways to support market participants. Each effort targets a different layer of the same sector: execution, liquidity, and data access.
Expansion meets scrutiny
Paradigm’s latest work also fits its broader strategy outside pure digital asset investing. The firm is reportedly raising as much as $1.5 billion for a new fund that will target not only crypto but also Artificial Intelligence and robotics.
The firm has used this approach before. In 2024, Paradigm CTO Georgios Konstantopoulos launched the crypto software firm Ithaca and served as its chief executive.
As we reported August 2025, Paradigm partnered with Stripe to build Tempo, a high-speed blockchain aimed at stablecoin use. Tempo had around 70 staff members in early March.
At the same time, prediction markets are facing more public scrutiny. On March 30, the National Football League asked operators, including Kalshi and Polymarket, to stop offering certain sports-related contracts that it said could be manipulated or known in advance.
The letters brought more attention to how far these markets can extend into sports and other real-world events.