Paradigm Builds Its Own Prediction Market Trading Terminal, Also Considering Market Making and Index Products

marsbitPublished on 2026-04-02Last updated on 2026-04-02

Abstract

Paradigm, a major crypto investment firm, is developing a dedicated trading terminal for prediction markets, targeting professional traders and market makers, according to anonymous sources. Led by partner Arjun Balaji since late 2025, the initiative aligns with growing institutional interest in prediction markets, where users speculate on events like elections or asset prices. The company is reportedly considering launching an internal market-making desk and exploring the creation of a prediction market index—similar to traditional indices like the S&P 500—by aggregating multiple prediction markets into a single tradable product. Paradigm has already begun compiling prediction market data into a public dashboard. Notably, Paradigm is a key investor in Kalshi, a leading prediction market platform it helped value at $22 billion, and insists the terminal does not compete with Kalshi’s core business. This move is part of Paradigm’s broader expansion beyond crypto into AI and robotics, evidenced by its ongoing efforts to raise a new $1.5 billion fund. The firm has a history of launching in-house projects, including the crypto software company Ithaca and Tempo, a stablecoin-focused blockchain developed with Stripe.

Author: Fortune (Anonymous Insider)

Compiled by: Deep Tide TechFlow

Deep Tide Guide: Prediction markets are evolving from niche tools to a mainstream financial sector. Paradigm is not content with just being an investor and is starting to build infrastructure itself. Behind this move is a top-tier crypto VC redefining its boundaries by incubating projects—from Ithaca to Tempo to the prediction market terminal, Paradigm is increasingly resembling a product company.

Full Text Below:

One of the most influential investment firms in the crypto space is seeking a larger share of the rapidly growing prediction market pie. According to insiders, venture capital firm Paradigm is developing a prediction market trading terminal for professional traders and market makers. The sources requested anonymity to discuss these non-public business plans. It is reported that Paradigm partner Arjun Balaji has been leading this project since late 2025.

Balaji did not respond to requests for comment, and a Paradigm spokesperson also declined to comment.

The advancement of this trading terminal project coincides with mainstream financial institutions racing to enter the prediction market space. Prediction markets allow traders to speculate on outcomes such as sports events, election trends, and even Bitcoin prices, and have seen growing popularity in recent years.

According to two insiders, Paradigm is also considering whether to establish an internal market-making desk for prediction markets alongside the development of the trading terminal.

Additionally, a third source familiar with Paradigm's situation stated that the venture capital firm is collaborating with researchers to explore the feasibility of creating prediction market indices. The core idea is to bundle multiple prediction markets into a tradable product, similar to how the S&P 500 index consolidates 500 company stocks into one index. Currently, Paradigm has begun aggregating prediction market data into a public dashboard.

Kalshi and Polymarket

Paradigm is a major investor in Kalshi, one of the top two prediction market platforms. In 2025, the venture capital firm participated in three rounds of funding for Kalshi and led the December round that pushed Kalshi's valuation to $11 billion. Currently, Kalshi has completed a new round of funding of at least $1 billion, raising its valuation to $22 billion.

Paradigm co-founder and managing partner Matt Huang serves on Kalshi's board of directors. According to one insider, Paradigm's development of a prediction market trading terminal does not compete with Kalshi's platform business.

Competitor Polymarket is also expanding rapidly. According to The Wall Street Journal, the platform is in talks for a new round of funding with a valuation of approximately $20 billion. Meanwhile, a new venture capital firm focused on prediction markets has been established, backed by the CEOs of both major prediction market platforms.

Paradigm's bet on prediction markets also comes as the company continues to expand its boundaries—from its traditional focus on digital assets to broader technology sectors. According to The Wall Street Journal, Paradigm is raising a new fund of up to $1.5 billion, with investment directions no longer limited to crypto but also including AI and robotics.

Paradigm has a tradition of incubating its own projects. In 2024, Paradigm CTO Georgios Konstantopoulos founded Ithaca, a crypto software development company, and serves as its CEO. Recently, Paradigm also collaborated with fintech giant Stripe to jointly develop Tempo—a high-speed blockchain designed for stablecoins. Managing partner Huang is leading this project. According to one insider, Tempo had about 70 employees by early March.

Related Questions

QWhat is Paradigm reportedly developing according to the article?

AParadigm is reportedly developing a prediction market trading terminal for professional traders and market makers.

QWho is leading the prediction market trading terminal project at Paradigm?

AParadigm partner Arjun Balaji has been leading this project since late 2025.

QBesides the trading terminal, what other prediction market-related products is Paradigm considering?

AParadigm is considering establishing an internal market making desk for prediction markets and is exploring the feasibility of creating a prediction market index.

QWhich major prediction market platform is Paradigm a significant investor in?

AParadigm is a significant investor in Kalshi, having participated in multiple funding rounds, including one that valued the company at $11 billion.

QHow is Paradigm expanding its investment focus beyond its traditional areas?

AParadigm is expanding its investment focus to include not just digital assets but also AI and robotics, as it raises a new fund of up to $1.5 billion.

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