Fortune reports that crypto-focused venture firm Paradigm is developing a prediction markets trading terminal tailored to professional traders and market makers. Sources say the initiative, led by partner Arjun Balaji, began in late 2025 and could include an in-house market-making desk to supply liquidity for event contracts. Paradigm did not immediately respond to requests for comment.
The firm is also collaborating with researchers on prediction-market index products that would package multiple event contracts into a single tradable instrument, analogous to equity indexes that aggregate stocks. Paradigm previously led Kalshi’s $185 million Series C round in June and its $1 billion Series E in December, signaling continued strategic interest in the space.
Paradigm already runs a public dashboard that tracks volume and open interest across platforms such as Polymarket and Kalshi, spanning categories like sports, crypto, politics, culture and financials. That tooling and prior public commentary have suggested ongoing efforts to build infrastructure for analyzing and trading prediction market data.
The move comes as prediction markets attract growing attention: reported trading volumes have repeatedly topped $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 moving in—Coinbase and Gemini have launched prediction offerings, and exchanges including Nasdaq and Cboe have sought permission to offer prediction-style binary options.
Regulatory and legal questions remain a major hurdle. Fast growth has raised concerns about insider trading and market manipulation, and certain contracts—especially those tied to sports—invite scrutiny under gambling laws. U.S. federal and state regulators continue to debate jurisdiction, some foreign authorities have banned or restricted platforms, and enforcement officials have warned that insider trading in prediction markets will be prosecuted. Those unresolved issues underscore the compliance risks firms face as the market expands.