Paradigm, a crypto-focused venture capital firm, is developing a prediction markets terminal aimed at professional traders and market makers, according to a report by Fortune. The project is being led by Paradigm partner Arjun Balaji, with sources indicating work began in late 2025. Cointelegraph reached out to Paradigm for comment but did not receive an immediate response.
Beyond the terminal, Paradigm is also weighing the creation of an internal market-making desk, which would provide liquidity by placing buy and sell orders within prediction markets. The firm is additionally working with researchers to assess whether prediction market indexes are feasible. Such indexes would bundle multiple prediction markets into a single tradable package, similar in concept to how the S&P 500 combines shares of 500 companies into one index.
Paradigm’s move into this space is not entirely new ground for the firm. It led Kalshi‘s $185 million Series C funding round in June and its $1 billion Series E round in December. The firm has also launched a publicly available dashboard tracking trading volume and open interest across platforms including Kalshi and Polymarket, covering categories such as sports, politics, crypto, and finance.
The prediction markets sector has emerged as one of the most active areas in crypto, consistently surpassing $10 billion in monthly trading volume. Some analysts forecast the space could reach $1 trillion in annual volume by the end of the decade, drawing a growing number of financial institutions seeking entry. Coinbase and Gemini have both launched prediction market products, while Nasdaq and Cboe are seeking regulatory approval to offer prediction market-style binary options.
Kalshi and its primary competitor Polymarket continue to lead the sector in trading volume, though newer entrants such as OPINION and predict.fun have recently recorded increased activity. The competitive landscape is expanding rapidly as both established financial players and crypto-native firms look to capture market share in the growing sector.
The sector’s rapid expansion has not gone unnoticed by regulators. Critics have raised concerns that prediction market platforms may facilitate insider trading and market manipulation, and that event contracts tied to sporting outcomes constitute a form of sports betting. US regulators at both the federal and state levels are currently working to determine which authority holds jurisdiction over prediction markets, while some international regulators have moved to ban certain platforms outright.
Originally reported by CoinTelegraph.
