Crypto-focused venture capital firm Paradigm is building a prediction markets trading terminal aimed at professional traders and market makers, Fortune reported, citing sources. Led by partner Arjun Balaji, the project reportedly began in late 2025 and may include an in-house market-making desk to provide liquidity for event contracts.
Paradigm is also working with researchers on the idea of prediction market indexes that would bundle multiple markets into a single tradable product, similar to how equity indexes aggregate stocks. The firm previously led Kalshi’s $185 million Series C round in June and its $1 billion Series E round in December, signaling broader interest in the sector. Cointelegraph reached out to Paradigm for comment and did not receive an immediate response.
The move adds Paradigm to a growing field of firms expanding into prediction markets. Trading volume has repeatedly exceeded $10 billion per month, and some forecasts project the sector could reach $1 trillion in annual volume by the end of the decade. Major crypto platforms and traditional market players are entering the space: Coinbase and Gemini have launched prediction offerings, while exchanges such as Nasdaq and Cboe have sought permission to offer prediction-style binary options.
Paradigm already runs a public dashboard tracking volume and open interest across platforms like Polymarket and Kalshi, covering sports, crypto, politics, culture and financials. The firm’s earlier tooling and public posts signaled continued interest in building infrastructure for exploring prediction market data.
Regulatory and legal questions remain unresolved. Rapid growth has drawn scrutiny over insider trading and market manipulation risks, and some event contracts—particularly those tied to sporting events—raise concerns about gambling laws. Federal and state regulators in the U.S. are debating jurisdiction, and some foreign regulators have banned or restricted certain platforms. Enforcement officials have warned that insider trading in prediction markets will be prosecuted, underscoring the compliance challenges as the market expands.