Crypto-focused venture capital firm Paradigm is reportedly developing a prediction markets terminal, joining a growing wave of Wall Street players seeking exposure to the rapidly expanding sector.
The initiative is being led by Paradigm partner Arjun Balaji and is aimed at professional traders and market makers, according to a Wednesday report by Fortune. Sources said work on the project began in late 2025.
Paradigm is also exploring the launch of an in-house market-making desk to provide liquidity by placing buy and sell orders within prediction markets.
Additionally, the firm is researching the potential creation of prediction market indexes — products that would bundle multiple markets into a single tradable instrument, similar to how the S&P 500 aggregates hundreds of companies into one benchmark.
The move comes amid a surge of interest in prediction markets, which some estimates suggest could reach $1 trillion in annual trading volume by the end of the decade. The sector gained significant traction last year, consistently exceeding $10 billion in monthly volume.
Major crypto platforms like Coinbase and Gemini have already launched prediction market products, while traditional exchanges such as Nasdaq and Cboe are seeking regulatory approval to offer similar binary options-style products.
Paradigm has been positioning itself in the space for some time. It led funding rounds for Kalshi, including a $185 million Series C in June and a $1 billion Series E in December. The firm has also built a dashboard tracking trading volume and open interest across platforms like Polymarket and Kalshi, spanning markets in sports, crypto, politics, culture, and finance.
Legal questions around prediction markets remain unresolved
Kalshi and its main rival Polymarket continue to dominate trading volumes in the prediction markets space. However, newer entrants such as OPINION and predict.fun have recently seen rising activity.
The sector’s rapid expansion has drawn increased regulatory scrutiny. Critics argue that prediction markets may enable insider trading and manipulation, while event-based contracts tied to sports are viewed by some as a form of betting.
In the United States, federal and state regulators are still determining which agencies should oversee the space. Meanwhile, some international regulators have taken a stricter stance, moving to ban certain prediction market platforms altogether.
