Paradigm, the San Francisco-based crypto investment firm, is developing a professional-grade trading terminal specifically for prediction markets, targeting institutional traders and market makers. The initiative, led by partner Arjun Balaji and initiated in late 2025, aims to provide Bloomberg-style tools for trading, analyzing, and routing liquidity across on-chain and regulated prediction platforms.
According to a Fortune report, Paradigm is simultaneously weighing the launch of an internal market-making unit for prediction markets. Furthermore, the firm is collaborating with researchers on a "prediction market index" product. This index would bundle multiple event contracts into a single, tradable structure, explicitly modeled on traditional financial benchmarks like the S&P 500.
This move signals a major shift in how prediction markets are perceived, treating them as an emerging asset class rather than a niche curiosity. The development follows a surge in venture capital interest in the sector, with prediction market startups attracting $3.7 billion in new capital recently.
Paradigm has already begun aggregating prediction market data into a public panel, a foundational step for the terminal. The firm is a major financial backer of Kalshi, the largest U.S. regulated prediction market provider. In December 2025, Paradigm led Kalshi's $1 billion Series E funding round at an $11 billion valuation. By March 2026, a subsequent $1 billion raise reportedly lifted Kalshi's valuation to $22 billion, highlighting the sector's explosive growth.
The prediction market sector has seen volumes skyrocket from under $100 million monthly in early 2024 to over $13 billion by the end of 2025. Paradigm founder Matt Huang has previously called prediction markets a "trillion-dollar opportunity" and sits on Kalshi's board. While Kalshi and Polymarket dominate, they face growing competition from crypto natives like Coinbase and Crypto.com, as well as established gambling brands.
The regulatory environment remains a focal point. The Commodity Futures Trading Commission (CFTC) under Chairman Michael Selig has stated that such activity falls under its remit, though several states have launched legal challenges against firms like Kalshi for allegedly violating local gambling laws.
