Paradigm Is Building a Prediction Market Trading Terminal for Professional Traders

TLDR

• Crypto VC firm Paradigm is building a prediction markets trading terminal, led by partner Arjun Balaji
• The terminal will serve professional traders and market makers
• Paradigm is also exploring an internal market-making desk and prediction market indexes
• Paradigm has backed Kalshi with over $1 billion across multiple funding rounds
• Prediction markets now regularly exceed $10 billion in monthly trading volume

Crypto venture capital firm Paradigm is reportedly building a prediction markets trading terminal, according to a Fortune report citing anonymous sources. The project is said to have started in late 2025.

Partner Arjun Balaji is leading the effort. The terminal is designed for professional traders and market makers, not retail users.

Paradigm is also looking at setting up an internal market-making desk. This would be an in-house team placing buy and sell orders to provide liquidity in prediction markets.

The firm is working with researchers to explore prediction market indexes. The idea is to bundle multiple prediction markets into one tradable product, similar to how the S&P 500 packages 500 stocks.

Paradigm has deep ties to Kalshi, the largest US prediction market platform. It led Kalshi’s $185 million Series C round in June 2024 at a $2 billion valuation.

In December 2025, Paradigm led Kalshi’s $1 billion Series E round, valuing the company at $11 billion. Kalshi is now valued at around $22 billion following another $1 billion raise in March 2026.

Paradigm founder Matt Huang sits on Kalshi’s board of directors. He has publicly called prediction markets a trillion-dollar opportunity.

Growing Competition in Prediction Markets

Kalshi and Polymarket currently lead the prediction markets space. But competition is growing fast. Coinbase, Crypto.com, and Genesis have all launched their own offerings.

Established gambling platforms like DraftKings are also entering the space. Nasdaq and Cboe are seeking regulatory approval to offer prediction market-style binary options.

Paradigm has already built a dashboard tracking trading volume and open interest across Polymarket, Kalshi, and other platforms. It covers sports, politics, crypto, culture, and finance.

Regulation Still Unclear

The legal picture around prediction markets remains unsettled. The Commodity Futures Trading Commission under Chairman Michael Selig has said prediction market activity falls within its jurisdiction.

However, several US states have filed legal challenges against firms including Kalshi and Crypto.com. They allege these platforms may be violating local gambling laws.

Regulators in some countries have gone further and banned certain prediction market platforms outright.

Prediction markets became one of the fastest-growing areas in crypto last year. Monthly trading volume has consistently topped $10 billion.

Kalshi’s valuation has risen sharply in a short time, going from $2 billion in mid-2024 to $22 billion by early 2026. Paradigm has not confirmed the terminal project publicly.

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