Exclusive: Paradigm, a major investor in Kalshi, is building its own prediction markets trading terminal, say sources

One of the most influential investors in crypto wants a bigger slice of the burgeoning prediction markets space. Venture capital firm Paradigm is developing a prediction markets trading terminal, according to sources familiar with the matter, who asked for anonymity to talk about private business dealings. Arjun Balaji, a partner at the venture firm, is leading the initiative, which will cater to professional traders and market makers, according to the sources, who say he’s been working on the project since late 2025.

Balaji didn’t respond to a request for comment. A spokesperson for Paradigm declined to comment.

The trading-terminal project comes at a time when mainstream financial institutions are scrambling to take advantage of the growing popularity of prediction markets, which let traders speculate on the results of sports games, elections, and even the price of Bitcoin. 

Paradigm has also mulled whether, in addition to creating a trading terminal, it should establish an internal market making desk in the prediction markets space, said two sources. 

In addition, a third source familiar with Paradigm said the venture firm is working with researchers to explore the feasibility of creating prediction market indices. This would entail bundling multiple prediction markets together into one tradeable package, much like the S&P 500 combines the stocks of 500 companies into one index. The venture capitalist has already begun collecting prediction market data into a public dashboard.

Kalshi and Polymarket

Paradigm has been a prominent backer of Kalshi, one of the two leading prediction markets. The venture capital firm joined three successive raises for Kalshi in 2025 and led the funding round in December that valued Kalshi at $11 billion. Now, Kalshi has raised at least $1 billion in a new financing round that values the business at $22 billion.

Matt Huang, the venture firm’s cofounder and managing partner, is on the startup’s board of directors. Paradigm’s development of a prediction markets trading terminal isn’t competitive with Kalshi’s platform, said a source.

Archrival Polymarket, has also exploded in growth and is in talks to raise a new round of funding at a roughly $20 billion valuation, the Wall Street Journal reported. Meanwhile, there is even a new venture firm focused solely on prediction markets, backed by the CEOs of both prediction markets.

Paradigm’s push into prediction markets also comes as the firm continues to expand beyond its historical remit of digital assets into other sectors in tech. The firm is raising as much as $1.5 billion for a new fund that will not only focus on crypto but also AI and robotics, the Wall Street Journal recently reported.

The venture firm has a history of incubating its own projects. In 2024, Paradigm’s CTO Georgios Konstantopoulos launched the crypto software development company Ithaca and served as the startup’s CEO. And, more recently, Paradigm has partnered with the fintech giant Stripe to build Tempo, a high-speed blockchain designed for stablecoins, or cryptocurrencies pegged to real world assets like the U.S. dollar. 

Huang, the venture firm’s managing partner, is leading the project. Tempo employed around 70 staffers in early March, said a source familiar with the business.

This story was originally featured on Fortune.com