Crypto-focused venture capital firm Paradigm is reportedly building a prediction markets terminal, joining a wave of Wall Street companies looking for a way to serve the fast-growing sector.
Led by Paradigm partner Arjun Balaji, the prediction market offering will cater to professional traders and market makers, Fortune said in a report on Wednesday, citing sources that said they started working on the project in late 2025.
Paradigm’s offering adds to a flood of companies looking to offer access to prediction markets, which some forecast could reach $1 trillion in annual volume by the end of the decade.
Paradigm is also considering rolling out an internal market-making desk — an in-house team that provides liquidity by placing buy and sell orders — for prediction markets.
One of the sources told Fortune that Paradigm is also working with researchers to explore the feasibility of creating prediction market indexes.
“This would entail bundling multiple prediction markets together into one tradable package, much like the S&P 500 combines the stocks of 500 companies into one index,” Fortune said.
Cointelegraph reached out to Paradigm for additional information, but didn’t receive an immediate response.
Related: CFTC’s top enforcer puts prediction market insider traders on notice
Prediction markets became one of the hottest use cases in crypto last year and have consistently surpassed $10 billion in monthly trading volume.
Coinbase and Gemini have since launched prediction market offerings, while Nasdaq and Cboe are seeking permission to offer prediction market-style binary options.
Paradigm had been looking at ways to get involved in the burgeoning market. It led Kalshi’s $185 million Series C funding round in June and its $1 billion Series E round in December.
The venture capital firm has also created a dashboard showing trading volume and open interest on Polymarket, Kalshi and other platforms across sports, crypto, politics, culture, financials and other topics.
new from paradigm: we are building a tool for exploring prediction market data
— storm (@notnotstorm) February 4, 2026
try it out today. I bet you'll find new markets you never knew existed pic.twitter.com/HtDBWtFoys
Legal issues over prediction markets still being ironed out
Kalshi and its biggest competitor, Polymarket, have been dominating prediction markets trading volume. However, other challengers, such as OPINION and predict.fun, have also seen an uptick in trading activity recently.
The rapid growth of the prediction markets space has attracted regulatory scrutiny, with critics concerned that the platforms encourage insider trading and market manipulation, while event contracts based on sporting events are a form of sports betting.
US regulators at the federal and state levels are hashing out who should have jurisdiction in regulating prediction markets, while some regulators abroad have outright banned certain prediction market platforms.
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