Paradigm Builds Prediction Markets Trading Terminal as Kalshi Investor Expands Footprint

Paradigm, a major venture capital firm and prominent backer of prediction market platform Kalshi, is developing a prediction markets trading terminal targeting professional traders and market makers, according to sources familiar with the matter.

Arjun Balaji, a partner at the firm, is leading the initiative, which has been in development since late 2025, as Paradigm seeks to expand its presence in the prediction markets sector beyond its role as an investor.

Paradigm Trading Terminal Aims to Serve Professional Traders and Market Makers

The trading terminal project is designed to cater to professional traders and market makers, providing a custom-built interface for accessing prediction markets. The initiative reflects Paradigm’s broader push into prediction markets infrastructure as mainstream financial institutions increasingly seek exposure to the rapidly growing sector, where traders speculate on outcomes ranging from sports games and elections to cryptocurrency prices.

In addition to the trading terminal, Paradigm has considered establishing an internal market-making desk for prediction markets, according to two sources. The firm is also working with researchers to explore the feasibility of creating prediction market indexes, which would bundle multiple prediction markets into a single tradable package similar to how the S&P 500 combines 500 stocks into one index. Paradigm has already begun collecting prediction market data into a public dashboard.

The venture firm has a history of incubating its own projects. In 2024, Paradigm CTO Georgios Konstantopoulos launched Ithaca, a crypto software development company. More recently, Paradigm partnered with fintech giant Stripe to build Tempo, a high-speed blockchain designed for stablecoins, with Paradigm managing partner Matt Huang leading that project.

Paradigm’s Kalshi Investment and Board Representation

Paradigm has been a significant backer of Kalshi, one of the two leading prediction market platforms. The venture firm participated in three successive Kalshi fundraising rounds in 2025 and led the December 2025 round that valued Kalshi at $11 billion. Kalshi has since raised at least $1 billion in a new financing round that values the company at approximately $22 billion.

Matt Huang, Paradigm’s co-founder and managing partner, sits on Kalshi’s board of directors. Sources indicated that Paradigm’s development of a trading terminal is not viewed as competitive with Kalshi’s platform. Huang has previously stated that prediction markets represent a trillion-dollar opportunity.

Rival prediction market platform Polymarket has also experienced explosive growth and is reportedly in talks to raise a new funding round at a roughly $20 billion valuation. A new venture firm focused solely on prediction markets, backed by the CEOs of both Kalshi and Polymarket, has also emerged.

Paradigm Expands Beyond Crypto into AI, Robotics, and Prediction Markets Infrastructure

The prediction markets push comes as Paradigm expands beyond its historical focus on digital assets into other technology sectors. The firm is raising up to $1.5 billion for a new fund that will invest not only in crypto but also in artificial intelligence and robotics, according to recent reports.

The prediction markets sector faces increasing competition from multiple fronts. Crypto-native companies including Coinbase, Crypto.com, and Genesis have launched offerings, while established gambling brands such as DraftKings are also entering the space. The Commodity Futures Trading Commission under Chairman Michael Selig has stated that prediction market activity falls under the agency’s remit, though several states have filed legal challenges against firms including Kalshi and Crypto.com for alleged violations of local gambling laws.

Paradigm declined to comment on the trading terminal project, and Arjun Balaji did not respond to requests for comment.

FAQ

What prediction markets infrastructure is Paradigm developing?

Paradigm is developing a prediction markets trading terminal targeting professional traders and market makers, led by partner Arjun Balaji. The firm is also considering establishing an internal market-making desk and exploring the creation of prediction market indexes that would bundle multiple markets into tradable packages.

How is Paradigm involved with Kalshi?

Paradigm is a major investor in Kalshi, having participated in three successive funding rounds in 2025 and leading the December 2025 round that valued Kalshi at $11 billion. Kalshi’s current valuation is approximately $22 billion following a subsequent $1 billion raise. Paradigm co-founder Matt Huang sits on Kalshi’s board of directors.

What regulatory challenges do prediction markets face?

The CFTC under Chairman Michael Selig has stated that prediction market activity is permitted under the agency’s jurisdiction. However, several states have filed legal challenges against prediction market operators including Kalshi and Crypto.com, alleging violations of local gambling laws, creating jurisdictional uncertainty for platforms operating in the space.