Key Highlights
- Paradigm is building a prediction markets trading terminal for professional traders and market makers.
- The firm is exploring market indices, an internal market-making desk, and a public dashboard for prediction market data.
- Paradigm has invested in Kalshi and Polymarket and continues to expand into other tech areas like AI, robotics, and blockchain.
Venture capital firm Paradigm is reportedly building a prediction markets trading terminal, similar to already established markets like Kalshi and Polymarket.
According to a Fortune report, the platform has been in progress since late 2025 and is led by Arjun Balaji, a partner at the firm. This terminal is made specifically for professional traders and market makers, who trade large amounts of money.
How the terminal works
Prediction markets are markets where people can bet on what will happen in the future. Traders can place bets on the results of elections, sports games, or the price of cryptocurrency.
According to sources, Paradigm is also considering additional steps alongside the trading terminal. The firm may create an internal market-making desk, which would involve creating and managing trades to ensure liquidity in the market.
The firm is also working with researchers to explore the possibility of creating prediction market indices. These indices would combine several different prediction markets into one tradeable package, similar to how the S&P 500 combines stocks from 500 companies into a single investment. In support of these efforts, Paradigm has started collecting prediction market data into a public dashboard for analysis.
Prior bets on prediction markets
This is not the first time the firm has invested in the prediction market. In 2025, Paradigm supported Kalshi, one of the major platforms in the space, in several funding rounds. In October 2025, it backed a $300 million Series D round that valued the firm at $5 billion.
At the same time, Matt Huang, co-founder and managing partner at Paradigm, is on Kalshi’s board of directors. However, sources say the new trading terminal does not compete directly with Kalshi or Polymarket.
The venture firm also has a history of creating and supporting technology projects. In 2024, Paradigm’s chief technology officer, Georgios Konstantopoulos, launched a crypto software company called Ithaca.
More recently, the firm partnered with the fintech company Stripe to build Tempo, a blockchain system for stablecoins. Also, the firm recently raised up to $1.5 billion for a new fund focused on technology sectors, including artificial intelligence and robotics.
Overall, Paradigm’s work in prediction markets reflects its broader effort to expand beyond crypto into other areas of technology.
Challenges from regulators
The expansion comes as prediction markets face increasing scrutiny in the United States. The U.S. senators have recently introduced a law that could ban prediction platforms from offering contracts that are linked to sports betting or casino-like games.
The bill is expected to prohibit platforms under the Commodity Futures Trading Commission (CFTC), including Kalshi and Polymarket, from listing these events.
According to a recent report, this bill is called the “Public Integrity in Financial Prediction Markets Act of 2026,” and one of the major concerns is the prevention of insider trading, especially by government officials.
State regulators have also taken up this matter. For instance, California Governor Gavin Newsom signed an executive order last week to prohibit state officials from taking bets on any prediction market or even helping family members to make money with such information.
Overall, as the market expands and more platforms emerge, regulatory oversight remains a key factor in ensuring fair trading and limiting the misuse of sensitive information.
Also Read: Pi Network Adds RPC Server on Testnet to Enable Smart Contracts
