- Paradigm is building a prediction markets trading terminal for professional traders.
- Project is led by Arjun Balaji and has been in development since late 2025.
- Firm is exploring market-making operations and prediction market indexes.
- Backed platform Kalshi reached a $22 billion valuation.
- Rival Polymarket is reportedly targeting a $20 billion valuation.
- Paradigm is expanding beyond crypto into AI, robotics, and fintech infrastructure.
Paradigm Expands Into Prediction Markets
Paradigm, a major crypto-focused venture capital firm, is developing a prediction markets trading terminal, familiar with the matter. The platform is designed for professional traders and market makers.
The initiative is being led by Arjun Balaji, a partner at the firm, who has reportedly been working on the project since late 2025. Neither Balaji nor a Paradigm spokesperson provided comments on the development. The move comes as prediction markets gain traction among mainstream financial institutions. These platforms allow users to trade on outcomes such as sports results, elections, and cryptocurrency price movements.
Indexes and Market-Making: In addition to the trading terminal, Paradigm is considering launching an internal market-making desk within the prediction markets sector, according to fortune. The firm is also working with researchers to explore the feasibility of prediction market indexes. These would bundle multiple markets into a single tradable product, similar in concept to traditional indices like equity benchmarks. Paradigm has already begun aggregating prediction market data into a public dashboard as part of this initiative.
Kalshi, Polymarket Growth and Broader Expansion
Paradigm has been a key investor in Kalshi, participating in multiple funding rounds in 2025, including leading a December round that valued the company at $11 billion. Kalshi has since raised at least $1 billion in a new round, reaching a $22 billion valuation. Matt Huang, cofounder and managing partner of Paradigm, serves on Kalshi’s board. Sources indicate that the new trading terminal is not intended to compete directly with Kalshi’s platform. Meanwhile, rival platform Polymarket has also seen rapid growth and is reportedly in discussions to raise funding at a valuation of around $20 billion.
Beyond prediction markets, Paradigm is raising up to $1.5 billion for a new fund targeting crypto, AI, and robotics. The firm has a track record of incubating projects, including Ithaca, launched in 2024 by CTO Georgios Konstantopoulos. More recently, Paradigm partnered with Stripe to develop Tempo, a high-speed blockchain focused on stablecoins. The project was led by Matt Huang and had around 70 employees as of early March. Recently, Kalshi secured NFA approval to operate as a futures commission merchant, advancing its plans for institutional margin trading. The platform continues to grow rapidly, with weekly trading volumes exceeding $3 billion.
