A significant shift is underway in the prediction markets sector as prominent venture capital firm Paradigm is reportedly developing a trading terminal specializing in this emerging market. Sources who are familiar with the confidential undertaking suggest that the initiative has been in progress since late 2025, under the guidance of Arjun Balaji, a partner at Paradigm. The trading terminal is targeted at professional traders and market makers, reflecting a strategic move amid the growing interest of mainstream financial institutions in the prediction markets arena.
Despite requests for comment, both Balaji and a spokesperson for Paradigm remained silent on the details of the project. The aim of the proposed trading terminal aligns with the increasing demand for platforms that facilitate trading on the outcomes of various events, from sports contests and elections to cryptocurrency valuations.
Speculations indicate that Paradigm is also considering the establishment of an internal market-making desk specifically focused on prediction markets. This expansion could enhance liquidity and encourage greater participation in the sector. Moreover, the firm is investigating the viability of creating prediction market indexes, similar to traditional stock market indices like the S&P 500, by bundling several prediction markets into a single investable product. To support this effort, Paradigm has already initiated the compilation of prediction market data into a publicly accessible dashboard.
Paradigm has established itself as a key supporter of Kalshi, a major player in the prediction markets landscape. The firm has participated in multiple fundraising rounds for Kalshi throughout 2025, culminating in leading a financing round in December that placed the startup’s valuation at $11 billion. In a recent development, Kalshi secured an additional $1 billion, pushing its valuation to $22 billion.
On the competitive front, its main rival, Polymarket, has also seen substantial growth and is reportedly in negotiations for a new funding round at a valuation of approximately $20 billion. Notably, a new venture firm dedicated to prediction markets has emerged, backed by the CEOs of both leading platforms.
Paradigm’s foray into prediction markets is part of a broader strategy to diversify its investment portfolio beyond its historical focus on digital assets. The firm is currently in the process of raising up to $1.5 billion for a new fund that will encompass not only cryptocurrencies but also sectors such as artificial intelligence and robotics.
The firm possesses a track record of incubating and launching its own projects. In 2024, Paradigm’s CTO, Georgios Konstantopoulos, founded Ithaca, a software development company in the crypto space, where he took on the role of CEO. More recently, Paradigm has collaborated with fintech leader Stripe to develop Tempo, a high-speed blockchain infrastructure aimed at stablecoins—cryptocurrencies associated with stable real-world assets like the U.S. dollar. Reports indicate that Tempo employed approximately 70 individuals as of early March, reflecting Paradigm’s active engagement in expanding its technological footprint.
