Author: Fortune (Anonymous Insider)

Translation: Deep Tide TechFlow

Deep Tide Introduction: The prediction market is evolving from a niche tool to a mainstream financial track, and Paradigm is not satisfied with just being an investor; they are stepping in to build the infrastructure themselves. Behind this move, top crypto VCs are redefining their boundaries through incubating projects— from Ithaca to Tempo to the prediction market terminal, Paradigm is increasingly resembling a product company.

The full text is as follows:

One of the most influential investment institutions in the crypto space is seeking a larger share of the rapidly growing prediction market pie. According to insiders, venture capital firm Paradigm is developing a prediction market trading terminal aimed at professional traders and market makers. The insiders requested anonymity to discuss this confidential business plan. It is reported that Paradigm partner Arjun Balaji has been leading this project since the end of 2025.

Balaji did not respond to requests for comments, and a Paradigm spokesperson also declined to comment.

The advancement of this trading terminal project coincides with mainstream financial institutions scrambling to lay out in the prediction market. Prediction markets allow traders to speculate on the outcomes of sports events, election trends, and even Bitcoin prices, with popularity continuously rising in recent years.

According to two insiders, Paradigm is also considering whether to set up an internal market-making desk for the prediction market alongside the development of the trading terminal.

Furthermore, a third insider familiar with Paradigm stated that this venture capital firm is collaborating with researchers to explore the feasibility of creating a prediction market index. The core of this concept is to bundle multiple prediction markets into a tradable product, similar to how the S&P 500 index consolidates the stocks of 500 companies into one index. Currently, Paradigm has begun aggregating prediction market data into a public dashboard.

Kalshi and Polymarket

Paradigm is a significant investor in Kalshi, one of the top two prediction market platforms. In 2025, this venture capital firm participated in three rounds of funding for Kalshi, leading the December round that valued Kalshi at $11 billion. Currently, Kalshi has completed a new round of at least $1 billion in funding, raising its valuation to $22 billion.

Paradigm co-founder and managing partner Matt Huang serves as a board member at Kalshi. According to an insider, Paradigm's move to develop a prediction market trading terminal does not constitute competition with Kalshi's platform business.

Competitor Polymarket is also expanding rapidly; according to the Wall Street Journal, the platform is negotiating a new round of funding, with a valuation of around $20 billion. Meanwhile, a new venture capital firm focused on prediction markets has also been established, backed by the CEOs of the two major prediction market platforms.

Paradigm's bet on the prediction market takes place against the backdrop of this company's ongoing expansion of its business boundaries—from the historically focused digital asset field gradually extending into a broader technological arena. According to the Wall Street Journal, Paradigm is raising funds for a new fund with a maximum size of $1.5 billion, with investment directions no longer limited to crypto, but also encompassing AI and robotics.

Paradigm has a tradition of incubating its own projects. In 2024, Paradigm's chief technology officer Georgios Konstantopoulos founded the crypto software development company Ithaca and became its CEO. Recently, Paradigm collaborated with fintech giant Stripe to jointly create Tempo—a high-speed blockchain specifically designed for stablecoins. Managing partner Huang is leading this project. According to an insider, Tempo had approximately 70 employees as of early March.