Sources: Paradigm, a major investor in Kalshi, is building its own prediction markets trading terminal that will cater to professional traders and market makers
One of the most influential investors in crypto wants a bigger slice of the burgeoning prediction markets space.
Context & Ripple Effects
Paradigm’s proposed terminal follows a deepening financial commitment to Kalshi: it led the platform’s earlier $185M round and later its $1B financing at an $11B valuation. The coverage also places Kalshi and Polymarket in a market that has already developed meaningful trading activity, with Kalshi reported at roughly $1B in monthly volume in 2025.
The move extends the ecosystem beyond consumer-facing event contracts toward the professional trading stack. It also arrives as Kalshi and Polymarket leaders back a fund intended to invest in prediction-market startups, suggesting participants are building adjacent infrastructure as well as venues.
First-order effects
- Professional traders and market makers would gain a purpose-built interface for trading prediction markets, while Paradigm moves from being principally a capital provider to supplying market infrastructure.
- Kalshi gains a strategically aligned provider focused on professional workflow, though the reported terminal is Paradigm’s product rather than a disclosed Kalshi platform feature.
Second-order effects
- A terminal aimed at liquidity providers can increase pressure on prediction-market venues and other trading-tool vendors to improve execution, data, and market-making support as institutional-style users become more important.
- Paradigm’s dual role as a major Kalshi investor and prospective infrastructure supplier may make investors and customers more attentive to how access, integrations, and incentives are structured around the venue.
Third-order effects
- If professional terminals become a standard layer, prediction markets could evolve from standalone retail products into a more modular financial-market stack—venues, liquidity firms, trading interfaces, and specialist investors.
- The broader ecosystem-building pattern, including the new fund backed by Kalshi and Polymarket leaders, could concentrate influence among the firms financing both market venues and their surrounding infrastructure; whether that improves liquidity without narrowing choice remains an open question.
The trend: Prediction markets are moving toward platformization, in which institutional-grade tooling and ecosystem capital become as consequential as the underlying trading venues.