- Sources say Paradigm is building a prediction markets trading terminal.
- Arjun Balaji is leading the initiative for professional traders and market makers.
- Paradigm is also exploring market making and prediction market indices
Paradigm is moving deeper into prediction markets with a new trading infrastructure project aimed at professional users. Sources say the crypto-focused venture firm is building its own prediction markets trading terminal, with partner Arjun Balaji leading the effort since late 2025.
The project targets professional traders and market makers rather than retail users. That timing is notable. Prediction markets have become one of the fastest-growing sectors in Silicon Valley, and investors, trading firms, and platforms are all trying to capture more of the momentum.
Sources say Paradigm’s terminal is designed for professional trading activity in prediction markets. That would place the firm closer to the trading layer of the sector rather than only the investment side. Balaji did not respond to a request for comment, and a Paradigm spokesperson declined to comment.
The terminal project arrives as mainstream financial firms show growing interest in markets that let traders speculate on sports, elections, macro events, and crypto prices. A trading terminal built for professionals suggests Paradigm sees room for more advanced infrastructure as volumes and competition increase.
Paradigm Studies Market Making and Index Products
Sources say Paradigm has also discussed launching an internal market-making desk focused on prediction markets. That would give the firm a more direct role in liquidity provision if it moves forward. Two sources say the idea is under consideration alongside the trading terminal itself.
Additionally, another source says Paradigm is also working with researchers to examine whether prediction market indices are feasible. That would involve bundling multiple markets into one tradeable product, similar to how an equity index groups stocks into a single instrument. Paradigm has already started collecting prediction market data into a public dashboard, which suggests the firm is building out the information layer as well as trading tools.
Kalshi Ties and Wider Sector Growth Raise the Stakes
Paradigm has already built deep ties to Kalshi, one of the two leading prediction market platforms. The venture firm participated in three Kalshi fundraising rounds in 2025 and led the December round, which valued the company at $11 billion. Kalshi has now raised at least $1 billion in a new round, valuing it at $22 billion. Matt Huang, Paradigm’s cofounder and managing partner, also sits on Kalshi’s board.
Sources say Paradigm’s trading terminal is not competitive with Kalshi’s platform. That distinction matters as prediction markets attract more capital. Polymarket is also in talks to raise fresh funding at a valuation of about $20 billion.
At the same time, Paradigm is expanding well beyond its original crypto remit. The firm is raising as much as $1.5 billion for a new fund spanning crypto, AI, and robotics, while continuing to incubate projects such as Ithaca and partnering with Stripe on Tempo, a stablecoin-focused blockchain.
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