Paradigm is building a self-hosted prediction market trading terminal, and plans to enter the market-making business and develop prediction market indices

Crypto venture capital giant Paradigm is developing a prediction market trading terminal, targeting professional traders and market makers, led by partner Arjun Balaji starting in late 2025. The information was shared with Fortune by an insider, while Paradigm’s official account declined to comment.

Three business lines moving in parallel

According to multiple insiders, Paradigm’s layout in prediction markets is not limited to the trading terminal. It also includes two additional business lines that are still being assessed: one is setting up an internal market maker business, directly matching trades within prediction markets; the other is collaborating with research teams to explore the feasibility of prediction market indices—an idea similar to how the S&P 500 packages multiple companies into a single tradable product, combining multiple prediction markets into one index. Paradigm has begun collecting prediction market data and publishing it on its own dashboard.

Kalshi valuation doubles to $22 billion, Polymarket keeps pace

Paradigm is the main investor in prediction market leader Kalshi, participating in three rounds of funding throughout 2025 and leading the E round completed in December 2025 at a valuation of $11 billion. Now, Kalshi has completed its latest round of funding, and its valuation has doubled again to $22 billion. Paradigm co-founder and managing partner Matt Huang serves on Kalshi’s board of directors.

Meanwhile, Polymarket is in talks for a new round of funding at a valuation of roughly $20 billion, according to The Wall Street Journal. The two prediction market platforms are chasing each other’s valuations, suggesting that capital heat in this sector continues to rise. There are even new venture capital firms on the market focused specifically on prediction markets, whose backers include the CEOs of both Kalshi and Polymarket.

Paradigm accelerates incubation of its own projects, extending its reach into AI and robotics

The trading terminal plan is not Paradigm’s first time incubating businesses on its own. In 2024, Paradigm’s CTO Georgios Konstantopoulos founded a crypto software development company, Ithaca, and became its CEO; more recently, Paradigm has partnered with fintech giant Stripe to build the high-speed blockchain Tempo, designed specifically for stablecoin use cases, with a team size of about 70 people.

In terms of overall strategic direction, Paradigm is also stepping outside the existing framework of cryptocurrencies. According to The Wall Street Journal, Paradigm is raising up to $1.5 billion for a new fund, and its investment scope will expand into AI and robotics. The development of a prediction market trading terminal is a snapshot of this business diversification—from turning into investors to becoming a more deeply engaged ecosystem builder.

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