Paradigm is building a professional-grade prediction markets trading terminal, led by partner Arjun Balaji since late 2025, signaling a shift toward Wall Street–style infrastructure for the space.

Paradigm, a venture capital firm, has invested in Kalshi and is weighing the launch of its own trading terminal aimed at professional traders and market makers, per Fortune and familiar sources.

Kalshi and Polymarket currently lead the market, with growing competition from crypto-native platforms and traditional gambling brands expanding into prediction markets.

As professional infrastructure grows, Robinhood’s share of Kalshi trades has declined, with institutions and direct-access traders increasing their participation; a potential move to Robinhood’s own exchange could shift distribution dynamics.

Valerie Cross provides context, noting the transformation is underway with substantial capital and institutional backing.

Kalshi has raised substantial funding, with Paradigm participating in 2025 rounds and leading a December round that valued Kalshi at $11 billion; a March 2026 round raised the valuation to about $22 billion after at least $1 billion more.

The firm is exploring launching an internal market-making desk for prediction markets and considering the feasibility of indices that bundle multiple markets into one tradable package, while compiling a public dashboard of prediction market data.

Kalshi declined to label its offerings as war markets, stating they do not offer such contracts.

Regulatory pushback remains in the space, including a Washington state lawsuit accusing Kalshi of enabling illegal gambling on elections and wars.

Overall, the prediction market sector is drawing investment and experimentation in terminals and indices, even as it faces ongoing regulatory scrutiny and opposition from state regulators and large institutions like the NFL.

Polymarket remains a major competitor, reportedly pursuing a roughly $20 billion valuation in a new funding round, underscoring intense rivalry in the space.

The industry is shifting from retail, gamified bets to a layered financial market with distinct retail and professional tiers and a broader infrastructure ecosystem.