Paradigm is building a pro‑grade prediction market terminal, eyeing an internal MM unit and S&P‑style index product as Kalshi’s valuation jumps to $22B on surging volumes.
Summary
- Paradigm is developing a professional-grade prediction market terminal targeting institutional traders and market makers.
- The firm is also exploring an internal market-making unit and an index product bundling multiple event markets, similar to the S&P 500.
- Paradigm, already a major backer of Kalshi, led a $1 billion round valuing the platform at $11 billion.
Paradigm is building a dedicated prediction market trading terminal aimed squarely at professional traders and market makers, in one of the clearest signs yet that real‑money event markets are being treated as an emerging asset class rather than a curiosity. The project, led by Paradigm partner Arjun Balaji and initiated in late 2025, is designed to give sophisticated users Bloomberg‑style tools to trade, analyze and route liquidity across a growing ecosystem of on‑chain and regulated prediction platforms, according to a recent report in Fortune.
The San Francisco‑based crypto investment firm is simultaneously weighing the launch of an internal prediction market‑making business, while working with researchers on a “prediction market index” that would package multiple event contracts into a single, tradable structure, explicitly modeled on benchmarks such as the S&P 500. Such an index could mirror earlier experiments with volatility and DeFi indices, and follows a broader wave of venture capital interest in the sector; one recent Forbes analysis noted that prediction market startups attracted $3.7 billion in new capital and “minted young billionaires at Polymarket and Kalshi” as trading volumes exploded.
Paradigm has already begun aggregating prediction market data into a public panel, a necessary precondition for any institutional‑grade terminal product. The firm is also one of the most aggressive financiers of regulated prediction venue Kalshi: in December 2025, Kalshi announced a $1 billion Series E funding round at an $11 billion valuation, led by Paradigm and joined by Sequoia, Andreessen Horowitz, ARK Invest and others, doubling its value in under two months, as first reported by TechCrunch and corroborated by company statements.
That bet has continued to pay off. A subsequent funding round reported in March 2026 lifted Kalshi’s valuation again, to $22 billion, after a further $1 billion raise, according to coverage compiled by Yahoo Finance and The Wall Street Journal. As prediction markets move from sub‑$100 million monthly volumes in early 2024 to more than $13 billion by the end of 2025, according to research cited by Forbes, the emergence of a dedicated Paradigm‑backed terminal, internal liquidity provision and index products suggests the asset class is being refashioned into financial infrastructure, rather than treated as a sideshow to spot crypto.
