Fortune Reports: Paradigm Builds Specialized Terminal for Prediction Markets
Major cryptocurrency venture capital firm Paradigm, which backs Kalshi, is creating a specialized terminal designed specifically for professional traders and market makers in the prediction markets space.
According to reports, Paradigm, a prominent venture capital firm specializing in cryptocurrency investments, is in the process of developing a terminal for prediction markets, becoming part of a broader trend of Wall Street firms seeking opportunities to tap into this rapidly expanding industry.
Under the leadership of Arjun Balaji, a partner at Paradigm, the prediction market platform will target professional traders and market makers specifically, according to a Wednesday report from Fortune that cited sources indicating development began in late 2025.
Additionally, Paradigm is exploring the possibility of launching an internal market-making desk — essentially an in-house team dedicated to providing liquidity through the placement of buy and sell orders — specifically for prediction markets.
According to one source who spoke with Fortune, Paradigm is also collaborating with researchers to examine the viability of developing prediction market indexes.
"This would entail bundling multiple prediction markets together into one tradable package, much like the S&P 500 combines the stocks of 500 companies into one index," Fortune said.
The services being developed by Paradigm contribute to a growing wave of firms seeking to provide prediction market access, with some industry observers projecting the sector could achieve $1 trillion in annual volume before the decade concludes.
Cointelegraph reached out to Paradigm for additional information, but didn't receive an immediate response.
Throughout the previous year, prediction markets emerged as among the most popular applications in the cryptocurrency space, consistently maintaining trading volume exceeding $10 billion on a monthly basis.
Major exchanges including Coinbase and Gemini have subsequently introduced their own prediction market platforms, while traditional exchanges Nasdaq and Cboe are pursuing regulatory approval to offer binary options styled after prediction markets.
Paradigm has previously demonstrated interest in finding ways to participate in the emerging market sector.
The firm served as the lead investor in Kalshi's $185 million Series C funding round in June and its $1 billion Series E round in December.
Additionally, the venture capital firm has developed a dashboard that displays trading volume and open interest across Polymarket, Kalshi and other platforms, covering categories including sport, crypto, politics, culture, financials and other topics.
Legal issues over prediction markets still being ironed out
The prediction markets landscape has been largely dominated by Kalshi and its primary rival, Polymarket, in terms of trading volume. Nevertheless, emerging competitors like OPINION and predict.fun have also experienced increased trading activity in recent times.
The sector's explosive growth has drawn the attention of regulators, with detractors expressing concerns that these platforms may facilitate insider trading and market manipulation, while event contracts centered on sporting events could constitute a form of sports betting.
Regulatory authorities in the United States at both federal and state levels are currently determining which agencies should have oversight authority for prediction markets regulation, while certain international regulators have completely prohibited specific prediction market platforms from operating.