Paradigm Builds Prediction Market Terminal for Pro Traders
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- Paradigm is developing a prediction markets terminal for professional traders and market makers, led by partner Arjun Balaji, with development starting in late 2025 per a Fortune report.
- Balaji is also exploring an internal market-making desk and working with researchers on prediction market indexes that would bundle multiple markets into one tradable instrument, modeled on the S&P 500.
- Kalshi raised $185 million in a Series C led by Paradigm in June, followed by a $1 billion Series E in December; Paradigm also operates a public dashboard tracking volume and open interest across Kalshi, Polymarket, and other platforms.
- Prediction markets have surpassed $10 billion in monthly trading volume, with industry forecasts projecting up to $1 trillion in annual volume by the end of the decade.
- Coinbase and Gemini have launched prediction market offerings, while Nasdaq and Cboe are seeking approval to offer binary options in the same style.
- Regulators are still sorting out jurisdiction over prediction markets, with concerns about insider trading and whether sports-based event contracts constitute gambling; some countries have already banned certain platforms.
Why it matters: Paradigm's move — combining a pro-grade terminal, dedicated market-making, and index products — pushes prediction markets from retail speculation toward institutional infrastructure. The firm already has deep exposure via leading Kalshi's $1.2 billion across two funding rounds, and with $10 billion-plus monthly volume plus Nasdaq and Cboe circling, the segment is scaling fast toward a projected $1 trillion annual market.
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