Paradigm’s self-built prediction market trading terminal is still considering market-making and index products.

Author: Fortune (anonymous insider)

Translation & Compilation: TechFlow

TechFlow Intro: Prediction markets are evolving from a niche tool into a mainstream financial sector. Paradigm—no longer content with its role as an investor—is now building infrastructure directly. This move reflects how top-tier crypto VCs are redefining their boundaries through project incubation: from Ithaca to Tempo and now to a prediction market trading terminal, Paradigm is increasingly resembling a product company.

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One of the most influential investment firms in crypto is seeking a larger share of the rapidly growing prediction markets segment. According to insiders, venture capital firm Paradigm is developing a prediction market trading terminal tailored for professional traders and market makers. The insiders requested anonymity to discuss this confidential business initiative. It is understood that Paradigm partner Arjun Balaji has led this project since late 2025.

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

The development of this trading terminal coincides with a broader push by mainstream financial institutions into prediction markets. These markets allow traders to speculate on outcomes ranging from sports events and election results to Bitcoin’s price—and have seen sustained growth in popularity in recent years.

According to two insiders, Paradigm is also considering whether to establish an internal market-making desk alongside the terminal’s development.

Additionally, a third insider familiar with Paradigm’s activities said the VC firm is collaborating with researchers to explore the feasibility of creating a prediction market index. The idea is to bundle multiple prediction markets into a single tradable product—akin to how the S&P 500 aggregates stocks of 500 companies into one index. Paradigm has already begun aggregating prediction market data into a public dashboard.

Kalshi and Polymarket

Paradigm is a major investor in Kalshi, one of the two leading prediction market platforms. In 2025, the VC firm participated in three consecutive funding rounds for Kalshi—including leading the December round that valued Kalshi at $11 billion. Kalshi has since completed a new funding round 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 an 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 negotiating a new funding round valuing it at approximately $20 billion. Meanwhile, a new VC firm focused exclusively on prediction markets has launched—with backing from the CEOs of both leading prediction market platforms.

Paradigm’s bet on prediction markets unfolds against the backdrop of its ongoing expansion beyond traditional boundaries—from its longstanding focus on digital assets into broader technology sectors. As reported by The Wall Street Journal, Paradigm is fundraising for a new fund of up to $1.5 billion, whose investment scope will extend beyond crypto to include AI and robotics.

Paradigm has a long-standing tradition of incubating in-house projects. In 2024, Paradigm’s Chief Technology Officer Georgios Konstantopoulos founded Ithaca, a crypto software development company, and serves as its CEO. More recently, Paradigm partnered with fintech giant Stripe to jointly build Tempo—a high-speed blockchain purpose-built for stablecoins. Managing partner Huang is leading this initiative. According to an insider, Tempo had approximately 70 employees as of early March.